Panel Urges Ministry to Rethink Hometown Donation Decision

Politics Lifestyle

Tokyo, Sept. 2 (Jiji Press)--A third-party panel of the internal affairs ministry decided Monday to recommend its minister to reconsider the exclusion of the city of Izumisano, Osaka Prefecture, from a revamped hometown donation system introduced in Japan in June.

The western city was excluded from the new "furusato nozei" tax relief-for-donation system because of its aggressive reward policy for donors.

It is the first time that the panel, the Central and Local Government Dispute Management Council, rejected the state's reasoning for its decision on a policy affecting local governments.

The council was set up under a law for equal relations between the central and local governments implemented in 2000.

The furusato nozei system was revamped to end excessive competition for donations among local governments, many of which had been offering lavish gifts to donors

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Jiji Press