The popularity of Japan’s Hometown Tax Payment System Surges, Donations Exceed 1 Trillion Yen

September 18, 2024 at 13:13 PM EDT

Japan’s hometown tax donation system is becoming increasingly popular among the Japanese people. In 2023, hometown tax donations exceeded the 1 trillion yen mark, an increase of 15% compared with last year. Food is the most popular gift in return for donations, with seafood from Hokkaido and meat from Miyazaki Prefecture being the most popular among donors.

White rice is among the most popular gifts in the hometown tax payment gifts. (Photo via Merxwire)

TOKYO, JAPAN (Merxwire) – Japan’s Ministry of Internal Affairs and Communications promotes the hometown tax donation system. This system allows taxpayers to give back to their hometown through donations, which can be used to deduct taxes and obtain local specialties. Therefore, it is becoming increasingly popular among the public. According to data released by the Ministry of Internal Affairs and Communications, the amount of hometown tax donations in 2023 reached 1.1175 billion yen, an increase of 15% from last year, and the number of applications will be approximately 58.94 million.

People often use the content of the return gift as a criterion when choosing a donation location. “Hokkaido,” famous for its fresh seafood, ranks first among the prefectures. Still, in the ranking of local governments, “Miyazaki Prefecture,” Japan’s main livestock town, is the most favored by donors.

The hometown tax is a system that fosters a sense of community and connection, allowing people to freely choose to donate to their hometown or the local government they want to support. Through this donation, people can obtain resident tax exemptions in the areas where they live and receive income tax refunds from the tax authorities, strengthening the bond with their local community.

Participants in the Hometown Tax Payment System have a wide range of options when it comes to choosing a thank-you gift, including food, drinks, daily necessities, home appliances, or various travel tickets. This variety not only supports local governments but also promotes specialties and tourism in each region, making the donation process more exciting and rewarding.

The hometown tax payment system has become increasingly popular with the public since its inception in 2008. (Chart via Merxwire)

In 2023, “food” was the most popular hometown tax return gift. Seafood ranked first, accounting for 21%; meat ranked second, accounting for 15%; and fruits and vegetables ranked third, accounting for 10%. In addition, household appliances and electrical appliances ranked fourth, and groceries and daily necessities ranked fifth.

Various local governments will launch special products as gifts to attract taxpayers to donate to the region. In the ranking of prefectures, Hokkaido ranks first, with a total of 165.4 billion yen, which has been more than twice that of Fukuoka Prefecture, the second place, and Miyazaki Prefecture, the third place, for five consecutive years.

Regarding local government rankings, Miyazaki Prefecture has ranked first for two consecutive years. It is Japan’s largest livestock town in terms of total livestock production of cattle, pigs, chickens, etc. Meat gifts, in return, are trendy. The return gifts of Hokkaido’s Monbetsu City, Shiranuma Town, Betsukai Town, and Nemuro City, which mainly focus on seafood, and the return gifts of Izumisano City, Osaka, which use beef, have been favored by users for many years.

What’s particularly special is that due to the poor rice harvest this year, rice prices have soared, and many supermarkets have even run out of rice to sell. As a result, rice’s popularity ranking has risen rapidly, highlighting the impact of such natural occurrences on local communities. Many areas where new rice is produced have become the targets of hometown tax donations, emphasizing the need for support in these regions.

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The popularity of Japan’s Hometown Tax Payment System Surges, Donations Exceed 1 Trillion Yen

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