“Furusato Nozei” Donations Drop in FY 2019 after 6-Yr Record Streak

Politics

Tokyo, Aug. 5 (Jiji Press)--The total amount of money collected under Japan’s “furusato nozei” hometown donation system in fiscal 2019 fell 4.9 pct from the previous year to 487,539 million yen, snapping a six-year streak of record highs, the internal affairs ministry said Wednesday.

The drop reflected the introduction in June last year of a new system, which limits return gifts to local products worth 30 pct or less of the value of donations.

The city of Izumisano in Osaka Prefecture, western Japan, received the largest amount of donations, at 18,497 million yen. The city was initially excluded from the new system, but it racked up the amount in April-May 2019 by running a campaign to offer Amazon.com gift certificates, on top of its return gifts, to donors.

The city of Miyakonojo in Miyazaki Prefecture, southwestern Japan, ranked second, with 10,645 million yen. Municipalities in Hokkaido, northernmost Japan, took third through fifth places, with the city of Monbetsu gathering 7,738 million yen, the town of Shiranuka 6,733 million yen and the city of Nemuro 6,589 million yen.

Under the furusato nozei system, people can make donations to local governments of their choice and in exchange qualify for residential tax breaks. Many recipient local governments offer gifts to donors in return.

[Copyright The Jiji Press, Ltd.]

Jiji Press