The Japan Financial Services Agency published a summary of a post-cabinet press conference in which Minister of Finance Katayama said discussions on lowering the consumption tax on food products remain unresolved, including possible measures for businesses in food service and in agriculture, forestry and fisheries. He said the funding approach has also not been settled, but any conclusion will be based on the premise of not relying on special public bonds. The issue is being examined at a working-level meeting that has collected views from business operators on the effects of the proposed tax cut. Reviews of subsidies, special tax measures and non-tax revenue are also under way as part of broader budget reform, but no conclusions have been reached. Asked about the yen trading around JPY 160, Katayama declined to comment on specific exchange rate levels and said the authorities would respond appropriately on foreign exchange as needed.
Japan Financial Services Agency2026-06-09
Japan Financial Services Agency publishes minister remarks that food tax cut support and funding remain undecided
The Japan Financial Services Agency reported that Minister of Finance Katayama said discussions on lowering the consumption tax on food products, including support measures for related industries and funding options that avoid special public bonds, remain unresolved. Working-level reviews of the proposed tax cut’s impact, subsidies, special tax measures and non-tax revenue are ongoing as part of broader budget reform, with no decisions yet taken. Katayama also declined to comment on specific yen levels, saying authorities would respond appropriately on foreign exchange as needed.