An information technology task force proposed Friday that Japan introduce passports featuring a microchip by the end of fiscal 2005.
The move would form part of an antiterrorism drive.
The IT Strategic Headquarters, chaired by Prime Minister Junichiro Koizumi, incorporated the proposal in a package aimed at accelerating Japan's efforts to become one of the world's most advanced IT nations.
The introduction of these passports would be effective in curbing the travel of terrorists since it is difficult to forge documents of this kind.
The package includes a plan under which the central and local governments and residents hit by disasters would share information simultaneously by using the Internet and mobile phones.
The government is to launch a system of this kind by the end of fiscal 2005.