Press Conference by KATAYAMA Satsuki, Minister of Finance and Minister of State for Financial Services

Regarding next fiscal year’s tax reform, there have been various proposals under discussion, including making Japanese Government Bonds (JGBs) for individual investors eligible for NISAs and introducing other tax incentives. Could you once again share your current thinking on these issues? Secondly, some have expressed concerns that if JGBs for individual investors were to become eligible for NISAs, it could result in a reduction in tax revenues. How do you respond to such concerns?

First of all, I am fully aware that a variety of opinions and proposals have already been put forward regarding the treatment of JGBs for individual investors in the context of tax reform. In order to ensure the stable issuance and redemption of JGBs going forward, we believe it is important to enhance the attractiveness of JGBs for individual investors. Through such efforts, we hope to encourage a broader range of investors to hold JGBs. I believe this is a goal shared by many people, and it is certainly one that we support. The Basic Policy on Economic and Fiscal Management and Reform 2026 also calls for expanding the domestic investor base by improving the attractiveness of JGBs for individual investors. In line with this policy, the Ministry of Finance is moving swiftly to review the features of existing products and consider the design of new ones. As for tax measures related to JGB holdings, proposals of this nature may be submitted through the regular tax reform process. The Ministry of Finance is involved both in putting forward such proposals, together with the Financial Services Agency (FSA), and in reviewing and assessing them. Therefore, we must carefully consider whether any such measures are consistent with the government’s ongoing policy of promoting a shift from savings to investment. We must also consider how any such measures would align with the government’s policy of encouraging a shift from savings to investment, while addressing longstanding concerns that preferential tax treatment for large JGB holdings could disproportionately benefit higher-income individuals. There are also a number of other issues that need to be examined. There are arguments both for and against such measures. Taking these considerations into account, we will continue careful discussions with persons concerned, particularly the ruling parties.