In fiscal year 2025, Tokyo and 18 other prefectures saw tax revenue outflows exceed what they took in through Japan’s “hometown tax” donation program (furusato nozei), with total losses topping ¥260 billion. On 5ch, the discussion split between users questioning a system that bleeds money through intermediary fees, and those defending it as working exactly as intended — shifting tax revenue from cities to rural areas.
Hometown Tax Donations: 19 Prefectures in the Red — Tokyo’s Losses Hit ¥225.5 Billion in FY2025
An independent calculation of FY2025 hometown tax donation figures — receipts minus the cost of reward gifts and the tax deductions residents claim — found that 19 prefectures saw more revenue flow out than in, putting them in the red. Tokyo’s shortfall alone reached ¥225.5 billion. The outflow, concentrated in urban areas, has once again exposed the strains built into the system.
Source: asahi.com / Original article here
On top of everything, hometown tax donations eat up valuable work hours from civil servants.
They're already busy enough — having to handle all this paperwork on top of it, I actually feel bad for them.
They're already busy enough — having to handle all this paperwork on top of it, I actually feel bad for them.
>>2
Public servants are basically slaves, so who cares.
Public servants are basically slaves, so who cares.
It's a system designed to redistribute money that's concentrated in cities out to rural areas — of course the cities end up in the red. That's just how it's supposed to work.
>>6
Isn't the whole country ending up in the negative too though?
Isn't the whole country ending up in the negative too though?
>>6
So we're spending ¥260 billion just to redistribute money to rural areas…?
So we're spending ¥260 billion just to redistribute money to rural areas…?
I do it because you lose out if you don't, but honestly I think this system mostly just benefits the middlemen.
>>7
There's a cap on how much you can donate, sure, but everyone living in Tokyo is piling into hometown tax donations to send money to rural areas — of course the cities end up in the red.
I mean, that's literally the point of the system.
There's a cap on how much you can donate, sure, but everyone living in Tokyo is piling into hometown tax donations to send money to rural areas — of course the cities end up in the red.
I mean, that's literally the point of the system.
How do you even manage to run a system that was supposed to be a guaranteed win and end up ¥260 billion in the red overall?
There's no way the total was ever going to be in the black, however you look at it.
There's a whole glut of hometown tax donation portal sites now — "Furu-whatever," Rakuten, you name it. Those things wouldn't exist unless someone was making money off them, so it's not just a simple lateral shift of tax revenue.
>>14
Well, it's basically a government-sanctioned skimming system that ordinary citizens get to participate in.
It's the ultimate "dumb it down for the masses" policy.
Well, it's basically a government-sanctioned skimming system that ordinary citizens get to participate in.
It's the ultimate "dumb it down for the masses" policy.
Wait, I just thought of something — if the goal is redistribution, couldn't the national government just… allocate money to local governments directly?! 😲💡
>>16
Exactly. It just talks a good game on the surface — what's actually happening is pure vested interests.
Exactly. It just talks a good game on the surface — what's actually happening is pure vested interests.
If somewhere's in the black, it means money's flowing out of somewhere else — isn't that just obvious?
>>19
By that logic, shouldn't it all net out to zero overall?
By that logic, shouldn't it all net out to zero overall?
Can you actually make a hometown tax donation to the place you already live in?
>>28
I mean, you can still make the donation itself, right?
I mean, you can still make the donation itself, right?
>>22
The deficit's from the portal sites' fees — isn't this a system that was never going to turn a profit in the first place?
The deficit's from the portal sites' fees — isn't this a system that was never going to turn a profit in the first place?
>>29
That's exactly one of the points people criticize it for.
That's exactly one of the points people criticize it for.
The whole system got broken because of the reward gifts.
Whoever started that needs to answer for it.
Whoever started that needs to answer for it.
>>36
Well, but without the gifts, who'd even bother using it? There's that too.
Well, but without the gifts, who'd even bother using it? There's that too.
Wasn't it around ¥130 billion in intermediary fees last year?
That's roughly how much tax revenue just evaporates.
That's roughly how much tax revenue just evaporates.
>>40
As long as that money becomes income for those companies, isn't that fine?
As long as that money becomes income for those companies, isn't that fine?
>>43
If you can say that about every middleman skimming a cut, then sure, I guess it's fine.
If you can say that about every middleman skimming a cut, then sure, I guess it's fine.
>>44
Well, that money does end up as someone's income too, in the end.
Well, that money does end up as someone's income too, in the end.
As a system, this is about as bad as it gets.
Roughly 20% of hometown tax donations go straight to companies as site operating costs.
Amazon's jumped in on this too now — money that should be going to the government as tax revenue is instead flowing out to foreign companies. However you slice it, that's a net loss for the country.
Roughly 20% of hometown tax donations go straight to companies as site operating costs.
Amazon's jumped in on this too now — money that should be going to the government as tax revenue is instead flowing out to foreign companies. However you slice it, that's a net loss for the country.
>>79
If something benefits you, it's best not to overthink it and just use it.
Our elected representatives have kept this system running for years, so I guess that's the will of the people.
If something benefits you, it's best not to overthink it and just use it.
Our elected representatives have kept this system running for years, so I guess that's the will of the people.
Rural areas making a bit more while cities lose tax revenue — that was the whole point from the start, so isn't this a success?
>>82
That was the whole point to begin with — this system was created by Yoshihide Suga back when he was Minister of Internal Affairs. The "hometown" in the name, and all that talk about "giving back to the hometown you moved away from," is just window dressing.
That was the whole point to begin with — this system was created by Yoshihide Suga back when he was Minister of Internal Affairs. The "hometown" in the name, and all that talk about "giving back to the hometown you moved away from," is just window dressing.
My resident tax has gone way down, I'll tell you that.
>>91
You're just paying it upfront instead, that's all.
You're just paying it upfront instead, that's all.
I'm honestly shocked how many people in this thread don't understand how this works…
Looked at nationally, it's simple:
– total tax revenue stays the same
– whatever gets spent on the reward gifts just becomes the deficit
That's literally all this is.
Looked at nationally, it's simple:
– total tax revenue stays the same
– whatever gets spent on the reward gifts just becomes the deficit
That's literally all this is.
>>97
>>98
Oh look at you, thinking on a national scale. Good for you.
But honestly — rural areas are getting poorer and the government wants to help them out, except there's no budget for it. And you can't exactly just tell cities "hand over your tax money to the countryside." So in the end, isn't this whole hometown tax donation thing just a way to move money from cities to rural areas without anyone complaining?
Though people are starting to complain now anyway.
>>98
Oh look at you, thinking on a national scale. Good for you.
But honestly — rural areas are getting poorer and the government wants to help them out, except there's no budget for it. And you can't exactly just tell cities "hand over your tax money to the countryside." So in the end, isn't this whole hometown tax donation thing just a way to move money from cities to rural areas without anyone complaining?
Though people are starting to complain now anyway.
Apparently overall tax revenue is shrinking because of this. Is there even a point?
Kids who grow up and finish school in rural areas all go off to universities in Tokyo, get jobs at Tokyo companies, and pay their taxes in Tokyo — of course rural areas are going to say "don't just suck us dry and give nothing back."
>>103
Then they should only let you donate to places you've actually lived, no?
Then they should only let you donate to places you've actually lived, no?
It's called a "hometown" tax donation, so obviously that's how it's supposed to work.
>>121
Except, apparently, you can donate to places that aren't your hometown too.
Except, apparently, you can donate to places that aren't your hometown too.
*This article is compiled and summarized from the 5ch (Nanademo Jikkyo G) thread “[Major Bad News] Hometown Tax Donation Losses Top ¥260 Billion… Isn’t Everyone Just Ending Up Miserable Because of This System?”.
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