Tokyo Considers Imposing 3% Hotel Tax to Replace Current Flat Fee System

The Japan News
Tokyo metropolitan government office

The Tokyo metropolitan government is considering imposing a 3% fixed rate hotel tax, replacing the current flat amount system, The Yomiuri Shimbun has learned. The new tax system would also be applied to minpaku private lodgings and common lodging houses, in addition to hotels.

Since October 2002, the metropolitan government has levied a lodging tax of ¥100 per person per night for stays costing between ¥10,000 and ¥15,000, and ¥200 per person per night for stays costing ¥15,000 or more.

With the introduction of a fixed rate, tax revenue is expected to increase by tens of billions of yen, as some luxury hotels’ lodging rates are considerably high.

The metropolitan government will submit the bill to the assembly within the current fiscal year.