Katayama Explains Governance, Tax and Shinkansen Policies

At a post-Cabinet meeting press conference on July 21, 2026, Finance Minister and Minister of State for Special Missions Katayama explained the government’s positions on three policy issues: corporate governance, tax and social security burdens, and Kyushu Shinkansen development.

On corporate governance, the government indicated that it would review the structure of the code and emphasize companies’ pursuit of growth investment to raise long-term value, rather than formal compliance. On taxation, it identified reducing the burdens of taxes, social insurance premiums and rising prices on middle- and low-income groups as the top priority, while considering permanent reforms separately from temporary measures. On the Shinkansen, it maintained that although the route’s regional economic connectivity benefits were recognized, the agreement alone did not finalize the project’s implementation.

Companies will face greater emphasis on practicing governance suited to their own circumstances and explaining it to investors. Investors will also be expected to demonstrate dialogue practices consistent with the purpose of the Stewardship Code, making accountability and dialogue quality important for both companies and institutional investors.

For household impacts, the policy choice will focus on whether broad price-reduction measures affecting the entire population or benefit measures targeting low-income groups and child-rearing households make burden relief easier to feel and fairer. The press conference also reflected the practical view that changes in gasoline prices and electricity bills are more readily recognized than bank-transfer benefits.

Connecting the West Kyushu Route is expected to produce economic benefits, while Saga Prefecture’s local burden and the joint burden shared with Nagasaki Prefecture also concern fairness with other development Shinkansen lines and the national government’s fiscal decisions.

The Financial Services Agency will publicize the revision’s purpose and collect and share good corporate examples as follow-up support for companies and investors. Companies will be encouraged to seek and practice governance appropriate to themselves and explain it to investors, while the Financial Services Agency will confirm the status of investors’ dialogue in line with the Stewardship Code, the principles for institutional investors. An English video message featuring the minister was also released for overseas investors.

Benefit-linked tax credits are being discussed as the core reform, while lowering the consumption tax rate on food and beverages is being considered as a transitional measure until its introduction. In working-level discussions by the National Council on Social Security, reports have circulated about the ruling parties’ proposal to set the rate at 1% from April next year and opposition parties’ calls for cash benefits. However, the minister said no information had been received that the discussions had been terminated, avoiding any premature conclusion.

For the Shin-Tosu–Takeo-Onsen section of the West Kyushu Route, the Ministry of Land, Infrastructure, Transport and Tourism and Saga Prefecture concluded an agreement that included special consideration, such as setting a certain ceiling on Saga Prefecture’s local burden, and deemed it appropriate for Nagasaki Prefecture and Saga Prefecture to share the burden based on the extent of their respective benefits. Going forward, after the environmental assessment and route selection, the government and ruling parties will discuss the development framework for development Shinkansen lines and the five construction-start conditions.