Finance Minister Masajuro Shiokawa said Tuesday he hopes to outline plans for a revision of the securities tax system before the extraordinary Diet session in September.
It is hoped that the tax reforms will inject life into the ailing stock market.
“I want a conclusion before the extraordinary Diet session in the fall,” Shiokawa told reporters following a Cabinet meeting, implying he hopes the ruling coalition will complete coordination by the end of August so that bills can be enacted during the session.
The minister also said he would call on the coalition parties and the government’s Tax Commission to “reach an agreement as soon as possible” on the capital-gains tax on stock sales.
At the same time, Shiokawa warned against expecting too much from tax reform with regard to boosting the frail Tokyo stock market.
“It is questionable how much effect a revision in the tax system will have,” he said.
He noted that the “sluggishness of high-tech companies, the downward revisions by major firms of their earnings projections, and the selling of shares held in cross-holdings by financial institutions” are among factors contributing to the recent stock decline.
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