Key Facts
• Over 10 million people use the Furusato Tax Donation system.
• Points for donations will be banned starting October 2025.
• Rakuten Group filed a lawsuit against the government on September 16, 2025.
• The system, launched in 2008, allows donations to local governments.
• In 2024, donations exceeded ¥1 trillion, marking a record high.
• Fierce competition among intermediary sites led to excessive point rewards.
• The Ministry of Internal Affairs deemed the competition misaligned with the system’s purpose.
• Rakuten submitted 2.95 million signatures opposing the ban in March 2025.
• The government argues the ban ensures proper use of public funds.
• Public reactions are mixed, citing both economic concerns and support for the ban.
Summary
The Furusato Tax Donation system, used by over 10 million people, faces significant changes as point rewards for donations will be banned starting October 2025. This decision, driven by the Ministry of Internal Affairs, aims to curb excessive competition among intermediary sites, which the government claims undermines the system’s original purpose of supporting local governments. Rakuten Group, opposing the ban, filed a lawsuit on September 16, 2025, after gathering 2.95 million signatures earlier in the year. While some citizens express disappointment over losing points amid rising living costs, others acknowledge the government’s rationale. The ban’s impact on donation trends and local government funding remains uncertain, with stakeholders exploring new strategies to attract contributors.
