TOKYO (Nikkei)–A growing stream of donations is flowing into the quake-hit prefectures of Iwate, Miyagi and Fukushima through the “furusato nozei” (hometown tax) system, with the roughly 889 million yen received in fiscal 2011 representing a 24-fold increase from a year earlier.
Through the furusato nozei system, people who donate money to municipalities where they do not reside receive tax breaks depending on the amount donated.
Most of the donations to the three Tohoku prefectures appear to be coming from the Tokyo and Osaka areas.
As of April, Iwate had received the most among the three, with about 5,800 people donating a total of 424 million yen. Both figures represent more than 30-fold increases from a year earlier.
Fukushima received about 295 million yen from roughly 4,750 people, 60% of whom are living in Tokyo, Chiba, Saitama or Kanagawa prefectures.
Miyagi received about 170 million yen from approximately 2,900 people.
(The Nikkei, April 18 evening edition)