Finance Minister Masajuro Shiokawa urged the ruling coalition parties Friday to quickly abolish the withholding tax on stock capital gains.
"The New Komeito party insists on moving forward the abolition of the withholding tax option, which is in line with the agreement made by the government's Tax Commission," Shiokawa told a meeting of the House of Representatives financial affairs committee.
"I want the ruling coalition parties to reach an early conclusion," he said.
On Thursday, the tax panel of the ruling coalition came close to agreeing to bring forward the abolition of the withholding tax option to January or April from April 2003, in the face of plunging share prices.
The coalition consists of the Liberal Democratic Party, New Komeito and the New Conservative Party.
Hiromitsu Ishi, head of the government's tax commission, has said the withholding tax option should be abolished by April.
The withholding tax option was originally to be abolished at the end of March this year but was extended for another two years as some lawmakers in the ruling coalition parties were concerned such a move would discourage individual investors.
Under the current system, investors have the option of paying either a 1.05 percent withholding tax on the value of share sales, whether or not they have gained, or a 26 percent tax on their capital gains by filing a separate tax return.
Shiokawa said proposals on stock tax reform will be compiled in early October by the ruling coalition parties.