Japan plans to end sales-tax collection on purchases of digital currencies in 2017







Japan looks to end sales-tax collection on purchases of virtual currencies in the spring, a move likely to propel the growth of bitcoin and others as alternatives to traditional money.



The change would reduce costs for buyers and relieve operators of virtual-currency exchanges of the administrative burden related to the tax.



Discussions between the Finance Ministry and Financial Services Agency are expected to lead to a formal decision after talks by a ruling-coalition tax panel at the end of the year.



The most widely used virtual currency is bitcoin, and buyers pay an 8% consumption tax in Japan to obtain bitcoins at dedicated exchanges, along with other fees. Japan is the only country among the Group of Seven leading industrial economies that taxes bitcoin purchases.