In order to prevent excessive competition for gifts in return for hometown tax payments, from October 10, the standard for local governments to spend on collecting donations will be tightened to 1% or less of the donation amount. The Ministry of Internal Affairs and Communications says that if the program is not implemented in accordance with the standards, participation may be canceled.
Under the hometown tax payment system, the Ministry of Internal Affairs and Communications has set a standard that the expenses used to solicit donations, such as the procurement cost of return goods, should be limited to 5% or less of the donation amount so that more than half of the donations received can be used as their own financial resources.
However, due to excessive competition for gifts in return, many local governments had expenses exceeding 5%, so we tightened the standards so that all expenses such as sending documents indicating receipt of donations were included in expenses and 5% or less, and started operation on October 10.
At a press conference, Minister Suzuki stated, "I believe that the operation of the hometown tax payment will be more appropriate in accordance with the original purpose, and I hope that each local government will thoroughly comply with the rules."
Due to the tightening of standards, local governments in each region were forced to review return gifts and raise the amount of donations, and 1,1785 local governments nationwide submitted plans based on the standards to the Ministry of Internal Affairs and Communications.
The Ministry of Internal Affairs and Communications (MIC) continues to allow all local governments that have submitted plans to participate, but calls for compliance with the standards, saying, "If the plan is not implemented as planned, participation may be canceled."