In a press conference summary published on the Japan Financial Services Agency website, Finance Minister Katayama said the government has not yet decided the design of a benefit linked tax credit or any related consumption tax relief measures. He described the recent National Social Security Council working-level meeting as an exchange of views rather than a decision, and said it would be inappropriate to comment further while discussions continue. He also said he was not aware that a proposal to cut the food and beverage consumption tax rate from 8 percent to 1 percent had been formally proposed or decided, so he declined to comment on funding a revenue shortfall of more than JPY 4 trillion or on whether a 1 percent rate combined with subsidies would satisfy a zero tax pledge. On operational readiness, he cited Ministry of Economy, Trade and Industry checks with system manufacturers indicating that changing systems to a 1 percent rate would generally require about five to six months of preparation. Separately, on foreign exchange, he repeated that the authorities can take decisive action when volatility or speculative activity emerges, but declined to discuss intervention effects before the release of the official data.
Japan Financial Services Agency2026-05-29
Japan Financial Services Agency publishes finance minister remarks that benefit linked tax credits and a 1 percent food tax option remain under discussion
At a press conference, Finance Minister Katayama said the government has not decided on a benefit-linked tax credit or any consumption tax relief, calling recent National Social Security Council talks non-decisional. He said no formal proposal exists to cut the food and beverage consumption tax from 8 percent to 1 percent, estimated five to six months would be needed to adjust systems for such a change, and reiterated that authorities may take decisive foreign exchange action against volatility or speculation while declining to discuss intervention effects ahead of official data.