Tokyo: The Japanese government plans to start collecting consumption tax on sales of smartphone game apps from platform operators such as Google LLC and Apple Inc., it was learned Tuesday.

The Finance Ministry on the day released a report compiled by a study group on the matter. The report calls for the planned taxation system to be introduced as soon as possible and made as simple as possible.

The government aims to implement the system in fiscal 2025 at the earliest.

While the market for smartphone game apps is expanding, many app developers are small firms and based overseas, and some do not pay the tax properly.

Therefore, the government plans to collect the consumption tax from platform operators instead of app providers.

The tax panels of the ruling Liberal Democratic Party and its coalition partner, Komeito, will discuss the details of the planned taxation system from Friday or later.

JIJI Press