On November 26, the Tokyo Metropolitan Government’s Bureau of Taxation released a draft revision of the lodging tax, which is available for public comment via the web or mail until December 26.
The current ordinance, introduced in October 2002, applies to inns and hotels in Tokyo, and exempts from taxation stays of less than 10,000 yen per person per night, 100 yen for stays of between 10,000 yen and 15,000 yen, and 200 yen for stays of 15,000 yen or more.
In the current draft, simple lodgings and private accommodations are added to the taxable base. Instead of raising the exemption standard from 10,000 yen to 13,000 yen, the burden amount will be changed to a flat rate of 3%. As an example, if the room charge is 13,000 yen, the tax will be 390 yen; if it is 15,000 yen, 450 yen; and if it is 20,000 yen, 600 yen. According to a survey by the Tokyo Metropolitan Government, more than 70% of students on school excursions will be exempt from taxation, while about 30% of all private accommodations will be taxed.
In addition, according to estimates by the Main Taxation Bureau, tax revenue is expected to increase from 6.9 billion (initial budget for FY2025) to 19 billion, and the expenditure sufficiency ratio for tourism industry promotion expenses is expected to improve from 20% to 60%.
The ways in which the lodging tax will be utilized include support by local governments to raise awareness of good manners and waste prevention, AI-based congestion mitigation and prevention, and support for making lodging facilities barrier-free, with specific details to be selected in each fiscal year’s budgeting process.
The company plans to propose the amendment at the “First Regular Meeting of 2026” to be held in February 2026, and after the ordinance is passed, the revised ordinance will be put into effect during FY2027 after consultation with the Ministry of Internal Affairs and Communications.
© Source travel watch