The Tokyo Metropolitan Government said on Wednesday that it plans to shift its accommodation tax from fixed amounts to a fixed rate of 3% of fees in fiscal 2027.
The shift is designed to align the tax with guests＊ ability to pay as people are increasingly opting for high-priced accommodation.
Capsule hotels and minpaku private lodgings will also be subject to the tax.
The metropolitan government will submit the plan for approval by the Tokyo Metropolitan Assembly and the internal affairs minister.
Currently, accommodation costing less than ?10,000 per person is exempt from the tax. The threshold will be raised to ?13,000.
The metropolitan government introduced the accommodation tax in 2002. At present, stays priced from ?10,000 and under ?15,000 per night and per person incur a tax of ?100, while those costing ?15,000 or more incur a ?200 tax.
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