Katayama Post-Cabinet Press Conference Summary, October 6, 2026
Overview
Finance Minister Katayama gave her views on funding a cut to the consumption tax rate on food and beverages, financial institutions’ information management, cross-border e-commerce, and a review of valuations for unlisted shares. She said the funding would come from reviewing expenditures and revenues and securing non-tax revenue, without relying on special deficit-financing bonds. She said no direction had been decided for the share valuation review and that consideration would be given to smooth business succession at small and medium-sized enterprises.
Key points
- She explained that funding for a consumption tax rate cut would be secured without relying on special deficit-financing bonds.
- She said that neither a direction for reviewing unlisted share valuations nor a conclusion had been decided, and that tax policy and business succession would be considered together.
- She said that even when tax records must be retained, they must be handled appropriately in accordance with the Act on the Protection of Personal Information.
- A working group that includes cross-border e-commerce businesses will discuss obtaining sales information and regulating the sale of illicit goods.
Overview
The press conference covered funding for a cut to the consumption tax rate on food and beverages, information management at financial institutions, low-value imports, unlisted share valuations, budget allocations for local governments, concerns about election campaigning, retention of personal information, and the management of government funds.
The press conference was held on October 6, 2026.
Impact
Daiwa Securities announced that approximately 220,000 records of customer information may have been leaked following unauthorized access at a business contractor. The minister said she would monitor the company’s response.
It was explained that Park24, which operates a rental car business, suffered a data leak involving 6.6 million records, including personal information.
Details
The policy is to secure funding for a cut to the consumption tax rate on food and beverages without relying on special deficit-financing bonds, based on the “outline” adopted by Cabinet decision on September 15. The government said it would gauge tax revenues through budget formulation reform, review expenditures and revenues, scrutinize the scale of public finances while steadily reducing the debt-to-GDP ratio, and manage bond issuance through both initial and supplementary budgets. It also cited reviews of special tax measures, subsidies, and funds by the Japan version of DOGE, as well as securing non-tax revenue.
The increase in low-value imported goods was described as a challenge for international logistics and customs administration, and a cross-border e-commerce working group will be established within a roundtable of the Customs and Tariff Bureau, customs authorities, and private businesses. The group will discuss obtaining sales information with platform operators and others, regulating the sale of illicit goods, and coordinating to ensure proper customs clearance.
The review of unlisted share valuations is being considered in light of the Board of Audit of Japan’s 2024 observations, and it was explained that neither a conclusion nor a direction has been decided. Discussions will continue at the tax commission toward the end of the year, including on the business succession tax system, with a view to supporting smooth succession at small and medium-sized enterprises.
Under tax law, businesses must retain ledgers and related materials so that transaction and tax return details can be verified, and must record information such as the names and addresses of transaction partners when necessary. Even when retention is required, businesses remain obligated to handle personal information appropriately under the Act on the Protection of Personal Information. The minister said businesses decide whether to record details such as dates of birth, and that the authorities are not requesting such details individually.