Tokyo Municipalities to Receive ¥153.2 Billion in Local Transfer Tax for FY2025
Tokyo, Japan – The Tokyo Metropolitan Government announced on July 29, 2025, the results of the FY2025 calculation for the ordinary transfer tax allocated to its constituent municipalities. The report indicates that Tokyo’s cities, towns, and villages are collectively set to receive a substantial ¥153.2 billion in national transfer tax revenue. This funding is a crucial component of the local government finance system, aimed at ensuring a stable revenue base for municipalities across Japan and promoting the equalization of basic public services.
The ordinary transfer tax is a vital financial resource distributed by the national government to local public bodies. Its primary purpose is to address disparities in financial capacity among different regions, thereby enabling all municipalities to provide a certain level of essential public services regardless of their local tax revenue. This mechanism plays a significant role in fostering balanced regional development and ensuring equitable access to services for all citizens.
The calculation of the ordinary transfer tax is based on a comprehensive formula that considers various factors, including population, land area, and the level of public service demand. The allocation for Tokyo’s municipalities reflects the unique financial circumstances and service provision requirements within the metropolitan area.
The ¥153.2 billion allocation is expected to contribute significantly to the operational budgets of Tokyo’s various municipalities. This funding will likely support a wide range of public services, from education and healthcare to social welfare, infrastructure maintenance, and disaster preparedness. It empowers local governments to continue providing high-quality services to their residents and to undertake necessary local development projects.
A spokesperson for the Tokyo Metropolitan Government commented, “This allocation of the ordinary transfer tax is essential for our municipalities to effectively carry out their responsibilities and to continue offering essential services to Tokyo residents. We are committed to working closely with our cities, towns, and villages to ensure this funding is utilized efficiently and effectively for the benefit of all.”
The details of the specific amounts allocated to each individual municipality within Tokyo will be further clarified through subsequent official releases. This announcement provides a clear indication of the financial support that national transfer tax will provide to Tokyo’s local governments as they plan their budgets and service provision strategies for the upcoming fiscal year.
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東京都 published ‘令和7年度普通交付税（東京都市町村分）の算定結果について’ at 2025-07-29 01:43. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.