Japan "Furusato Nozei" Donations Hit Record High for 2nd Yr

Politics

Tokyo, July 29 (Jiji Press)--The amount of money collected under Japan's "furusato nozei" hometown donation system in fiscal 2021 hit a record high for the second straight year, the internal affairs ministry said Friday.

The sum rose 1.2-fold from the previous year to 830,239 million yen, apparently boosted by donations from people aiming to get regional specialties offered as return gifts, such as meat and fruit, amid the continuing trend of staying home due to the COVID-19 pandemic.

Under the furusato nozei system, taxpayers can make donations to local governments of their choice and qualify for tax breaks in exchange. The amount of the donation minus 2,000 yen is deducted from the donor's residential and income taxes.

Donors can also receive return gifts from the local governments. Japan changed the system in June 2019 to limit return gifts to local products worth 30 pct or less of the amount of donations to put a brake on intensifying competition among municipalities to win donations.

The city of Monbetsu, Hokkaido, northernmost Japan, attracted the largest amount of donations at 15,297 million yen, followed by the city of Miyakonojo, Miyazaki Prefecture, southwestern Japan, at 14,616 million yen and the city of Nemuro, also Hokkaido, at 14,605 million yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press