Japan Furusato Nozei system faces gift expirations amid regulatory shifts

Japan's Furusato Nozei (hometown tax donation) system is facing significant changes, with over 15,000 popular gift items scheduled to end their availability by the end of September. This surge in expiring items is driven by upcoming regulatory revisions announced by the Ministry of Internal Affairs and Communications. Starting in October 2026, the criteria for local specialty products will become stricter, and the allowable ratio of costs for gifts will be reduced by 2.5 percent.

In contrast to the impending restrictions, Miyazaki City reported record-breaking success in its tax donation program. The city's donations reached approximately 14.3 billion yen last fiscal year, ranking sixth nationally and marking an 11 billion yen increase from the previous year. Popular gifts included eel, beef, and mangoes. Mayor Tomonori Kiyoyama attributed this growth to increasing the variety of gifts and expanding the number of portal sites used to showcase local products. The city is utilizing these funds for public projects, including a 1.2 billion yen fund for construction and subsidies for children's medical expenses.