Tax Incentive For Sightseeing Earns Kutchan Town JPY87 million

The tax incentive program ‘Hometown Tax Donation (furusato nozei)’ for sightseeing has earned Kutchan Town JPY87 million in one year, more than double the amount initially estimated.

‘Hometown Tax Donation’ allows taxpayers to donate to an area of their choice, and in return receive a tax deduction and a gift, usually a local specialty of the area.

Kutchan Town officially started a program last year in March that allows tourists to receive a coupon that can be used in the town instead of a local specialty, when they donate for a tax deduction.

Winter season accounted for the majority of the donations, and there were 26 large-scale donations of over JPY1 million, making up 56% of the total amount collected.

Many of the visitors who donated were from Tokyo, Osaka, Nagoya prefecture, and 60% of the coupon was used for accommodation.

Kutchan Town plans to use the donations for projects related to the extension of the Hokkaido Shinkansen and the promotion of international resorts.

Over 20 cities and towns in Japan have incorporated this tax incentive program for sightseeing, and Hokkaido Shinbun newspaper reported in January that according to a company operating the program, Kutchan Town was by far leading in the sum of donations.

Sources:
Hokkaido Shinbun Newspaper – 9 May 2023
Hokkaido Shinbun Newspaper – 14 January 2023
Japan Times – 2 October 2022

You might also be interested in…

• Niseko Ski Resorts Sees 87% Recovery Of Lift Numbers
• Sapporo eyes a 2% tourist tax
• Yen Weakens To 15-Year Low Against Euro