4 Local Govts to Be Left Out of New Hometown Donation System

Politics

Tokyo, May 9 (Jiji Press)--Japan's internal affairs ministry plans to exclude four municipalities from a new system for the "furusato nozei" taxpayer donation mechanism, which will be introduced in June, it was learned Thursday.

The four are the city of Izumisano in Osaka Prefecture, the town of Oyama in Shizuoka Prefecture, the town of Koya in Wakayama Prefecture and the town of Miyaki in Saga Prefecture.

The ministry ruled that the four municipalities should not be included in the new donation system for tax deductions after they earned large sums of donations in the old system through inappropriate methods such as sending lavish return gifts in and after November last year, according to informed sources.

It plans to reach a final decision on the matter by the end of next week at the earliest, following discussions held by the Local Public Finance Council, which advises the internal affairs minister.

The new system, aimed at cooling down heated competition among local governments to offer expensive return gifts, will limit such gifts to local items that are worth 30 pct or less of the donation value.

[Copyright The Jiji Press, Ltd.]

Jiji Press