Tourists who buy products in Japan may soon undergo a different process of getting waivers for their consumption tax.

Currently, the tourists’ consumption tax is deducted at the point of sale at designated duty-free stores and sales counters. However, some tourists abuse the system by reselling the products within Japan.

The Japanese government is considering changing the way tourists get their consumption tax waived, reported media outlet Nikkei Asia on Nov 25.

Under a new method, travellers will pay the consumption tax when buying items, and be refunded the incurred tax only when they leave Japan and their purchases are confirmed.

These changes may be rolled out in fiscal year 2025 or later, said Nikkei Asia.

Japan’s law spares foreign travellers from the consumption tax if they are in the country for shorter than six months.

Tax exemption is valid for goods taken out of Japan as travellers’ personal souvenirs. But goods to be resold within Japan are not eligible to be duty-free.

Duty-free sales at Japanese department stores hit a record 38.3 billion yen (S$343 million) in October, the Japan Department Stores Association said on Nov 24, according to Nikkei Asia.