30th August 2025 – (Osaka) Osaka prefecture has abandoned its contentious proposal to impose a special tax on foreign tourists after an expert panel deemed the plan legally and practically unfeasible. Governor Hirofumi Yoshimura initially introduced the tax in March last year to address the challenges of overtourism in the region.
However, a review by a panel of university professors and experts revealed significant legal and administrative hurdles to implementing the tax, as reported by Yomiuri broadcaster. The panel noted that targeting foreign visitors for additional contributions could violate tax treaties that prohibit nationality-based discrimination. Furthermore, the logistics of collecting such fees would present considerable administrative challenges.
Following the panel’s recommendations, Osaka officials announced they would halt the proposal and reassess their approach, according to News on Japan.
Osaka is projected to welcome 15 million foreign tourists this year, with expectations that this number will soar to 20 million annually by 2030. The prefecture is also set to host the Osaka Expo 2025, which organisers anticipate will attract 28 million visitors.