City Wins Suit against Japan Govt over Special Grants

Politics Society

Osaka, March 10 (Jiji Press)--Osaka District Court on Thursday issued a ruling invalidating the Japanese government's decision to substantially cut special tax revenue grants for a western Japan city that collected a massive amount of money under the country's "furusato nozei" hometown donation system.

The city of Izumisano in Osaka Prefecture had sued the state, claiming that the decision was unlawful and invalid.

Presiding Judge Osamu Yamaji said that the central government's decision was "illegal" because it deviated from the scope of actions permitted under the local tax grant law.

The central government had once excluded Izumisano from the furusato nozei scheme, concluding that the city solicited donations in a way that went against the purpose of the system. The city rejoined the system after the Supreme Court canceled the state's decision.

Mainly at issue in the lawsuit filed by the city was the central government's discretion over the distribution of the special tax grants.

[Copyright The Jiji Press, Ltd.]

Jiji Press