National Council on Social Security

On February 26, 2026, Prime Minister Takaichi held the first meeting of the National Council on Social Security at the Prime Minister’s Office.

At the meeting, the participants engaged in discussions on comprehensive reforms of social security and taxation systems.

“Thank you very much for your attendance today at such a late hour.

In recent years, Japan has entered a new socioeconomic phase marked by rising prices, along with a significant population decline as well as an aging population and low birthrates. Under these circumstances, it is essential to advance national discussions toward building a social security system that people across all generations can accept, including the balance between benefits and burdens.

In particular, we intend to reduce the burden on middle- and low-income earners as they struggle to pay taxes and social insurance premiums and cope with higher prices.

We need to proceed with discussions on comprehensive reforms of social security and taxation systems, including designing a system for refundable tax credits as the main focus. However, as an interim measure until such a system is introduced, and taking into account the views expressed by Mr. Anno, the ruling coalition believes it is necessary to examine the schedule and funding sources for introducing, without relying on deficit-financing bonds, a two-year zero-rate consumption tax on food and beverages currently subject to the reduced tax rate.

As I mentioned to you earlier, considering future price trends, or cases of sudden outbreaks of infectious diseases causing major disruptions, we may be more flexible about making changes especially to the consumption tax rate and other issues. However, it would be quite embarrassing if systems cannot keep up to these changes, so one possible option is to adopt flexible systems, such as smart cashiers, well in advance. I am also looking forward to your proposals from a technological perspective.

In addition, with regard to this National Council on Social Security, I hope that we can jointly hold it with those who share the recognition that consumption tax is a vital source of funding for social security and those working to realize the refundable tax credit system, so that we can address the challenges mentioned above in a careful manner that is visible to the public, yet with a sense of speed where possible.

While Policy Research Council Chairperson Kobayashi has made great efforts to approach parties not present today, we will continue to encourage them to participate in this council.

Going forward, with your cooperation, we will aim to compile an interim report before summer. If we can reach a conclusion on taxation at that stage, we will seek to submit the necessary bills to the Diet as early as possible.

This issue has remained unaddressed for a long time. Since my younger days, I have believed that striking a balance between benefits and burdens is necessary. Let’s boldly tackle this issue by working across party lines to hold discussions while drawing on the wisdom of practitioners and experts. I would appreciate your cooperation.”