"Furusato Nōzei" Donations Hit Another Record in Fiscal 2016 (News)


Tokyo, July 4 (Jiji Press)—The total amount of money contributed under the furusato nōzei hometown donation system in Japan in fiscal 2016 grew 70% from the previous year to ¥284.4 billion, setting a record high for the fourth straight year, the internal affairs ministry said Tuesday.

The growth was mainly due to the attractive gifts donors receive from local governments in return for their donations, ministry officials said.

Under the furusato nōzei system, introduced in fiscal 2008, people can make donations to municipalities and prefectures of their choice, which do not necessarily have to be their hometowns. In return, donors qualify for deductions on their income and residential taxes, after subtracting ¥2,000 from the donation amount.

In fiscal 2016, which ended in March, donations to the city of Miyakonojō in Miyazaki Prefecture were the largest, at ¥7.3 billion, followed by the city of Ina, Nagano, at ¥7.2 billion, and the city of Yaizu, Shizuoka, which received ¥5.1 billion.

Donations increased to Kumamoto Prefecture and its municipalities, which were hit by a series of strong earthquakes in April 2016, as well as to the city of Itoigawa, Niigata, where a major fire took place in December 2016.

[Copyright The Jiji Press, Ltd.]

taxation Jiji Press municipalities local communities