Osaka High Court on Thursday upheld a lower court ruling that the central government's decision to cut special tax grants to the city of Izumisano, due to its huge revenues under the furusato nōzei (hometown tax donation) system, was illegal.
Presiding Judge Kenji Maki dismissed an appeal by the central government.
According to the court ruling and other sources, the city in Osaka Prefecture raised about ¥49.8 billion in donations in fiscal 2018, the largest amount among Japan's local governments under the tax donation program.
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