Globl Taxfree, a subsidiary of IT component supplier Hicel Inc., said on July 16 that it would kick off the excise tax refund business for foreign tourists in Japan by launching a sales office in Canal City Hakata, a large shopping and entertainment complex in Fukuoka.
Shin Gyu-yong, Globl Taxfree's executive, said, "Our Japanese unit could win the permit to run the tax refund windows in Canal City Hakata less than a year after it was established. It was thanks to our know-how and experience we have gained in Korea as a value-added tax refund operator."
The sales revenue of Canal City Hakata is estimated at US$310 million this year, of which $60 million is from foreign visitors. Shin of Globl Taxfree added, "In addition to Canal City, we are in talks with major department stores in Tokyo and Osaka for possible deals in excise tax refund services. In the latter half, we will work with other department stores and shopping malls in Japan."
According to the Korea Tourism Organization, Japan's tourism industry is growing at an annual clip of 30-40 percent due to the weak yen and foreign tourist-friendly policy measures. The Japanese government has introduced a tax refund scheme to return excise taxes for foreign tourists upon leaving the country since October last year. In April this year, the government revised laws so that the government can contract out tax refund operations to private contractors like Global Taxfree.
Global Taxfree has started its operations in 2014 in earnest after establishing a unit in Singapore. The company expected it would be able to break even in the second half of this year.
