The corporate version of Japan's hometown donation system, which allows companies to contribute to regional revitalization projects by local governments in exchange for tax benefits, is becoming increasingly popular.
About 90% of local governments nationwide have already accepted donations under the system, establishing corporate contributions as a key means of funding regional revitalization projects.
But some local governments have been found to provide de facto rewards to donor companies, violating the system's rules and raising concerns about improper practices. In response, the Cabinet Office plans to develop measures aimed at increasing transparency and ensuring the system operates properly.
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