Hokkaido proposes ‘graded fixed income’… Some cities, such as Otaru, adhere to the ‘flat rate’
In Atami, a hot spring resort, support for the introduction is sluggish due to concerns over ‘triple taxation’ by lodging businesses.
Following the downgrade of the infectious disease status of the new coronavirus, the recovery of tourists, including foreigners (inbound) visiting Japan, appears to be increasing the number of local governments aiming to introduce an accommodation tax levied on guests staying at hotels or ryokan, a traditional Japanese inn.
According to the Sankei Shimbun on the 13th, discussions on lodging tax are most active in seven cities in the province, including Hokkaido and Sapporo.
The tax plan proposed by Hokkaido, a representative winter tourist destination in Japan, is a tiered flat rate system in which the tax amount varies depending on the accommodation fee (per person per night). It is 100 yen for less than 10,000 yen, 200 yen for more than 10,000 yen, and 500 yen for more than 50,000 yen. Expecting annual tax revenue of 6 billion yen, the plan is to limit its use to the promotion of tourist destinations.
Sapporo City, the center of Hokkaido, is agreeing to the implementation of the ‘step-by-step flat rate system’ proposed by the province.
Discussions on introducing an accommodation tax have begun not only in Hokkaido but also in other regions.
Miyagi Prefecture, located in northeastern Honshu, announced plans to resume discussions on introducing an accommodation tax, which had been postponed due to the coronavirus outbreak last September. In the same month, Sendai City, which had suspended discussions with Miyagi Prefecture, also expressed its intention to resume reviewing the lodging tax as part of a plan to secure its own financial resources. After solidifying the direction of the system this fall, we aim to introduce it in 2025.
In Akita Prefecture, northern Honshu, Akita City, famous for the “Kanto Festival” to pray for a good rice crop, and Hirosaki City in Aomori Prefecture, which hosts the “Hirozen Sakura Festival” famous for cherry blossoms, also began reviewing the introduction of an accommodation tax in September. We plan to form a consultative body in which tourism-related organizations and lodging establishments participate, taking into account tax amounts, etc.
In late October, central Chiba Prefecture established a research committee that included discussions on introducing an accommodation tax in response to increased tourism demand following the coronavirus outbreak.
However, there are many challenges that need to be solved in the process of introducing the lodging tax.
The Sankei reported that the seven cities in the province are unable to keep pace with the tax plan proposed by Hokkaido, which aims to be introduced as early as 2026, as differences of opinion erupt.
Among the local governments that are expressing their disapproval, Otaru City and Furano City are offering their own lodging tax, a ‘flat rate system’ of 200 yen per person per night, regardless of the lodging fee. A Furano city official said, “If the provincial lodging tax is added to the flat rate system of 200 yen, up to 700 yen per night will be added to the lodging fee,” and is concerned about the loss of visitors due to double taxation and the increased burden on lodging facilities that collect the tax. .
Atami City, Shizuoka Prefecture, one of the country’s leading hot spring resorts, is considering a flat rate of 200 yen per person per night for accommodation tax, and is hastening adjustments with accommodation establishments that will collect it from guests. The city administration and finance department discussed the introduction of accommodation tax in November last year. This is because the council presented the condition that it must obtain the understanding of special collection obligors such as lodging establishments.
In Atami City, Shizuoka Prefecture, central Honshu, famous as a hot spring resort, the City Administrative Finance Council, which discussed the introduction of lodging tax in November last year, presented conditions for introducing lodging tax after obtaining the understanding of special tax collectors such as lodging establishments, and hastened coordination with lodging establishments. there is. However, Sankei reported that local lodging businesses are concerned that if an additional lodging tax is introduced on top of the existing consumption tax and bathing tax for guests, it could result in ‘triple taxation’ and reduce competitiveness with other tourist destinations.
Accommodation tax is an extra-statutory tax that local governments can stipulate by ordinance and levy independently, and is implemented with the consent of the Minister of Internal Affairs and Communications. Currently, nine local governments, including Tokyo and Osaka Prefecture, are introducing it.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.