Key Facts
• September 16, 2025: Finance Minister Kato reiterated opposition to lowering consumption tax.
• Consumption tax supports social security amid rising costs from rapid aging.
• Lowering tax requires significant system updates and raises equity concerns.
• Nikkei 225 briefly surpassed 45,000 points, reflecting various economic factors.
• Government refrains from commenting on stock market movements but monitors trends closely.
Summary
Japanese Finance Minister Katsunobu Kato reaffirmed on September 16, 2025, that lowering the consumption tax rate, including reduced tax rates, is inappropriate. He emphasized the tax’s role in funding social security amid increasing costs due to rapid aging. Kato noted that reducing the tax would require extensive system modifications and raised concerns about equitable burden distribution, including for high-income earners and luxury goods. Regarding the Nikkei 225 surpassing 45,000 points, Kato stated that stock prices are determined by various factors and declined to comment on specific market movements. However, he assured continued monitoring of economic and financial trends in collaboration with relevant agencies.
