On the 30th, the Tokyo Metropolitan Taxation Research Committee (chairman: Takehiko Ikegami, professor at Rikkyo University), made up of experts, submitted its report for this year to Governor Yuriko Koike. Regarding hometown tax payments, he points out that “a fundamental review, including abolishment, should be carried out.”

Regarding hometown tax donations, the report claims that “resident taxes that should be paid in return for administrative services are transferred to other local governments, distorting the relationship between benefits and burdens.” In addition, given the current situation where there is a competition for return gifts, “We may consider lowering the percentage of return gifts in order to bring it closer to the original form of donations that do not require anything in return.”

Hometown tax payments began in fiscal 2008 to revitalize local areas, such as people’s hometowns. The amount excluding the 2,000 yen self-pay will be deducted from resident tax and income tax up to a certain limit. According to the Tokyo Metropolitan Government, the amount of revenue losses for the Tokyo metropolitan area and the cities, wards, towns and villages within Tokyo are increasing year by year, reaching a total of approximately 189.9 billion yen this fiscal year.