Japan’s Osaka prefecture has dropped a controversial plan to charge foreign tourists a special tax after an expert panel said the proposal was legally and practically unworkable.
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Osaka Governor Hirofumi Yoshimura had proposed the tax in March last year as a way to require travellers to share the cost of mitigating overtourism in the prefecture.
However, after studying the feasibility of the plan, a panel of university professors and other experts told the local government that there were numerous legal and administrative problems with its implementation, Yomiuri broadcaster reported.
Legally, singling out foreigners for extra contributions might be a violation of tax treaties prohibiting discrimination based on nationality, they said. Collecting the fees would also prove an administrative headache.
In light of the panel’s recommendation, Osaka officials said they had no choice but to put the proposal on hold and review their next steps, News on Japan news website reported.
This year, the prefecture expects to welcome 15 million foreign travellers, according to a report on Japan Today newspaper. It is also hosting the Osaka Expo 2025, which organisers have projected will draw 28 million visitors.