Tokyo's 23 wards are diversifying their offerings under the hometown tax donation program, with a shift toward "hands-on experience" gifts that showcase local attractions.
Hometown tax programs, or furusato nōzei 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 foods or vouchers for local attractions.
Initially reluctant to participate in the race among local municipalities to lure taxpayers with gifts, Tokyo wards are now embracing the program as their tax revenues continue to decline.