Tokyo’s 23 wards are diversifying their offerings under the hometown tax donation program, with a shift toward “hands-on experience” gifts that highlight local attractions.
Residence tax programs, or furusato nลzei as they are known in Japanese, allow taxpayers to make donations to municipalities of their choice. In return, they receive resident and income tax deductions and gifts such as regional dishes or vouchers for local attractions.
Initially reluctant to join the race among local municipalities to lure taxpayers with gifts, Tokyo’s neighborhoods are now embracing the program as their tax revenues continue to decline.
