Anyone who has lived in Japan for more than a year will tell you: residence taxes can be expensive! However, as diligent members of the society we live in, we accept this is the price we must pay for things like sanitation, roads, schools, government, and everything else that stops us from being three meals away from anarchy.
However, in an age when, thanks to the tendency of capitalism to concentrate wealth into certain places (not to mention hands), many people over the last two centuries have migrated from the small towns and villages they grew up in to the city so that they could find work, there is less tax income for the places that need it. So how has Japan met this issue? Let us introduce you to Furusato Nozei!
What is “Furusato Nozei”?
Furusato Nozei (ふるさと納税) literally means, “hometown tax.” It is a way in which people who leave smaller towns to find work in places like Tokyo, Osaka, Nagoya, and so on can choose to donate a portion of their residence taxes to their hometown, giving back to the places that raised them.
This is naturally something that feels nice, right? After all, even those of us who live under the tall buildings and bright lights of the city look back fondly on the grassy, hilly, less densely places that raised us. But in addition to doing one’s “duty” as a child of your town, there are significant economic reasons to do so, as well.
Why Did Japan Start Furusato Nozei?
As we discussed earlier, the acceleration of capitalism has meant that for the past few hundred years, people have been compelled to move from the country into the city to find work. There is, of course, nothing inherently wrong with this: urban areas are more energy-efficient than rural areas when it comes to transport, electrification, and more. Additionally, the advance of technology means that many farms can produce food without needing hundreds of employees.
But tractors don’t pay tax. As people leave these smaller places, so too does their labor, and therefore the tax revenue that smaller areas need to survive. To go some way to correct this, Japan instituted the Furusato Nozei system so that when people move away from their hometowns, they know that their absence wouldn’t mean that their parents, neighbors, and youngsters don’t have to see their public services be degraded.
How Does Furusato Nozei Work?
Even residents from abroad can sue this program. Perhaps you have moved from one area to another, and want to continue showing your appreciation for the place in Japan that first took you in. Or, perhaps you’re looking to score some goodies: more on that below. But how to go about doing so?
First, as this useful website on the subject describes, you need to find out what the maximum level of residence tax you can donate is. Of course, you cannot donate 100% of your residence tax, as otherwise our beloved cities would themselves be starved of income.
Next, you will need to make your donation. This will be upfront, and will be the value of your desired donation, minus a ¥2,000 fee. It can all be done over the internet, and after the transaction is complete, you will be mailed a donation receipt, which you will need to file with your local ward or city office to have that donation deducted from your residence taxes.
It’s a nice sentiment, no? But if you’re a new arrival, why should you be interested? What is in it for you? Please continue, dearest reader!
How Can You Benefit From Furusato Nozei?
One of the benefits of Furosato Nozei — aside from how it fulfills one’s conscience and, arguably, social obligation to give what you can to those who need it more — is that you receive thank you gifts.
That’s right: you will receive gifts, for free, from the location you donated your portion of your residence tax to. As a way of demonstrating gratitude, the location that one decides to donate to will send a free gift to you. For example, you can receive venison from Hokkaido, beef from Miyazaki prefecture, or fruits from various places. Fruit in Japan is expensive, so getting it straight from the source for free is a God-send.
So, for anyone who wants to give back while getting a little treat themselves, there are few options better than Furusato Nozei. Even if you haven’t lived in a particular place before, why not check out what you can get? For a ¥2,000 fee, helping a local community and getting 2kg of salmon for free is more than a good deal: it’s a unique way to experience Japanese appreciation.
