Hometown Donations Hit Record 512.7 B. Yen in FY 2018

Politics Lifestyle

Tokyo, Aug. 2 (Jiji Press)--The total amount of money collected under Japan's "furusato nozei" hometown donation system in fiscal 2018 grew some 40 pct from the previous year to 512,706 million yen, hitting a record high for the sixth straight year, the internal affairs ministry said Friday.

The growth was the steepest on record in terms of amount, apparently as some local governments collected huge amounts of donations by offering generous return gifts.

The combined amount of donations collected by four municipalities that were excluded from a new donation system launched in June this year accounted for over 20 pct of the total amount for fiscal 2018, which ended in March.

Under the system, people can make donations to local governments of their choice, which do not necessarily need to be their hometowns. In return, the amounts of donations minus 2,000 yen are deducted from their income and residential taxes.

After some municipalities competed to win donations by offering expensive return gifts, the ministry decided to limit such gifts to local products worth up to 30 pct of the value of donations and exclude local governments from the system if they do not comply with the rule.

[Copyright The Jiji Press, Ltd.]

Jiji Press