Tax deductible donations to municipal governments under the furusato nozei (hometown tax) payment scheme in fiscal 2016 hit a record ¥284.4 billion, the government said Tuesday.
Donations were up 1.7-fold in the year ended March 31 from fiscal 2015 as simplified online procedures encouraged more people to make use of the program, the internal affairs ministry said.
The program, launched in fiscal 2008, allows people to donate to their hometowns or any other municipality of their choice and receive tax cuts. In practice, most users donate to local governments other than their hometowns, thanks to the gift incentives that are offered.