THE WHAT? Japan plans to abolish a decades-old tax exemption on small imports for personal use, closing a loophole that benefits overseas e-commerce sites such as Shein and Temu.
THE DETAILS Currently, personal imports are taxed on only 60% of their value, allowing cheaper prices than those offered by domestic retailers. The rule, introduced in 1980, will be scrapped under fiscal 2026 tax reforms as import volumes have quadrupled in five years to 200 million. Authorities will also review the exemption for goods under 10,000 yen (US$65).
THE WHY? The move aims to reduce unfair competition for Japanese retailers and curb misuse of tax exemptions by overseas sellers.
Source: Nikkei Asia
