Rakuten Sues Government over Ban on Furusato Tax Points

TOKYO, Jul 11 (News On Japan) - Rakuten Group has filed a lawsuit against the Japanese government, claiming that the Ministry of Internal Affairs and Communications' decision to effectively ban reward points from the furusato nozei (hometown tax donation program) starting in October is unlawful.

The furusato nozei system allows donors to receive points from intermediary websites as part of promotional campaigns. Companies like Rakuten have used these incentives to attract users, but the ministry plans to ban such practices from October.

Rakuten President Hiroshi Mikitani has opposed the move, submitting a petition with more than 2.95 million signatures to Prime Minister Ishiba in March.

Rakuten Vice President Kentaro Momono said, "Rakuten has filed an administrative lawsuit against the government in the Tokyo District Court. The lawsuit seeks to nullify the revised directive issued by the Ministry of Internal Affairs."

The company announced that it is seeking to overturn the ministry’s directive banning point rewards, arguing that the measure imposes excessive regulations on intermediary platforms and exceeds the minister’s discretionary authority, making it illegal.

Source: TBS

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