Governors from Saitama, Chiba, and Kanagawa submitted a formal request to the Chief Cabinet Secretary to correct the imbalance of tax revenues [1].
This move highlights a growing tension between Japan's capital and its surrounding prefectures. As tax revenues increasingly concentrate in Tokyo, neighboring regions struggle to secure sufficient general financial resources to maintain public services and infrastructure.
Motohiro Ono of Saitama, Shunichi Kumagai of Chiba, and Yuichi Kuroiwa of Kanagawa held a joint press conference on Monday to detail their demands [1]. The three governors [2] are calling for the correction of tax disparities, and the securing and enhancement of total local general financial resources [3].
Earlier this month, on June 23, the governors met with Itsunori Onodera, the chairperson of the tax system research council, in Tokyo to present their grievances [3]. The group said that the current system fails to account for the economic realities of the modern era.
While this specific request was driven by the three governors, the issue has broader regional support. A meeting of the Kanto Regional Governors' Conference, which included 10 representatives from one metropolis and nine prefectures, previously discussed these fiscal challenges [4].
Governor Yuriko Koike of Tokyo has previously commented on the complexity of the tax system, saying that some expenditures were "unclear" [3]. Koike also said there is a need for a local tax financial system that is "appropriate for the era" [4].
The joint statement from the three governors emphasized a direct need for structural change, saying, "We request the correction of the deviation of tax sources and the securing and enhancement of the total amount of local general financial resources" [3].
“We request the correction of the deviation of tax sources and the securing and enhancement of the total amount of local general financial resources”
The request reflects a systemic struggle in Japan's fiscal architecture where corporate activities and wealth are heavily centralized in Tokyo. By demanding a 'correction' of tax disparities, these governors are pushing for a redistribution mechanism that prevents the capital from absorbing the vast majority of tax yields, which would allow surrounding prefectures to fund their own regional development without relying solely on central government grants.
