Japan Excludes 4 Municipalities from New Hometown Donation System

Politics

Tokyo, May 14 (Jiji Press)--Japan's internal affairs ministry said Tuesday that it has designated a total of 1,783 local governments, excluding Tokyo and four municipalities, for a new framework of the "furusato nozei" hometown tax donation system that will start in June.

The exclusion of the four municipalities was decided after they collected massive amounts of donations through methods deemed inappropriate by the ministry.

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 new system is intended to cool down heated competition among local governments to attract donations by offering overly generous return gifts.

Under the revised local tax law, return gifts must be limited to local items, with procurement costs for the items capped at 30 pct of the value of donations.

[Copyright The Jiji Press, Ltd.]

Jiji Press