Katayama Post-Cabinet Press Conference Summary, October 9, 2026
Overview
Finance Minister Katayama explained the Cabinet’s approval of a bill on consumption tax and support payments, reviews of special tax measures, subsidies and funds, a request for cybersecurity measures by financial institutions, and the decision to establish a reconstruction support fund for the Kumamoto earthquake. The bill combines a temporary reduction in the consumption tax rate on food and beverages with support payments based on income, and calls for securing funding without relying on special government bonds. The government will advance the use of fund assets and review special tax measures, while promoting support for disaster-affected businesses with cash flow and existing debt.
Key points
- The government outlined a policy of first implementing a temporary consumption tax rate reduction and support payments, then moving toward full implementation.
- The government will thoroughly review subsidies, funds and special tax measures.
- The Financial Services Agency will ask financial institutions and others to check their cybersecurity measures and take necessary action.
- It was decided to establish a reconstruction support fund for businesses affected by the Kumamoto earthquake.
Overview
At the press conference, the minister explained the bill approved by the Cabinet, reviews of the budget and tax system, cybersecurity measures at financial institutions, and reconstruction support following the Kumamoto earthquake.
The government will explain the bill in the Diet to secure its early passage and work with relevant ministries and agencies to prepare for smooth implementation.
Impact
The minister said the tax rate reduction on food and beverages would ease the burden across all income groups, while support payments would focus relief on middle- and low-income households.
The Financial Services Agency will urge that all possible steps be taken to address disaster-affected businesses’ cash flow and existing debt.
Details
The bill introduces employment-related burden reduction support payments. As a bridge until their full implementation, it temporarily reduces the tax rate on food and beverages and starts support payments in an amount equivalent to 1% consumption tax. The policy is to fully introduce the payments from April 2029 and restore the tax rate to its original 8%, securing funding without relying on special government bonds.
The name of the review council was changed, and its remit was explicitly expanded to include funds. For subsidies, the government will check whether cost-effectiveness can be evaluated and whether measures overlap with similar programs. For funds, it will consider returning idle assets to the national treasury or switching to commitments to incur government debt. It will use the Government Tax Commission to examine the policy effects of special tax measures and review them from the ground up.
The Financial Services Agency will issue an advisory asking financial institutions and others to promptly check their response status and take necessary measures. Reading information from IC chips was cited as an example of identity verification. The Reconstruction Support Fund will be jointly established by the Regional Economy Vitalization Corporation of Japan (REVIC) and local financial institutions.