Japan is planning to change its tax-free system for foreign visitors amid misuse, with the government aiming to require shoppers to pay taxes on purchases up front and apply for a refund later.

Currently, those visiting from abroad can buy goods without the consumption tax at designated stores. The shops are supposed to verify the identity of shoppers and make sure the purchases are not for illegal purposes, like reselling.

But there are visitors who still resell their untaxed items within Japan. Some major department stores and cellphone shops have also been slapped with back taxes for transactions that didn't meet tax-free requirements.

The government and the ruling parties are planning a new system that will require foreign visitors to pay the consumption tax upon purchase. Shoppers would then be able to get a refund when departing Japan if they present the items.

The government will discuss in fiscal 2024 how to implement the system.