Japan Considers Imposing Consumption Tax on Low-Cost E-Commerce Imports to Level Playing Field

Japan’s Finance Ministry is considering a consumption tax on low-cost imports priced at JPY10,000 or below
Current exemptions apply to both taxes and tariffs for these goods
The policy change targets goods from Chinese e-commerce platforms
Aim is to promote fair competition between foreign and local businesses
Timing of the revision may be included in the next tax reform package by 2026
New obligations for overseas e-commerce operators are being considered
Tariff exemptions for low-value items likely to remain to ease customs workload
Other countries are also reevaluating de minimis policies
Japan’s revision reflects a global trend to tighten tax loopholes in e-commerce
Japan exempts items priced at JPY10,000 or less from tariffs and consumption tax
In 2024, there were 169.66 million cases of such imports, worth JPY425.8 billion
Chinese e-commerce sites like Temu and Shein are increasing sales using de minimis rules
Temu was the most downloaded e-commerce app worldwide last year

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.