25 July 2001, 09:06  Koizumi urges tax, monetary measures to shore up stocks - report

TOKYO (AFX-ASIA) - Prime Minister Junichiro Koizumi has told Taku Yamasaki, secretary general for the Liberal Democratic Party, to draw up securities taxation reform plans and monetary policy measures in order to help prop up falling stock prices, the Nihon Keizai Shimbun reported, without citing sources. At the prime minister's request, the ruling coalition parties - the LDP, New Komeito and the New Conservative Party - will hold a policymakers meeting today to discuss bringing forward plans for securities tax reform, it said. Koizumi, however, dismissed so-called price-keeping operations, which use public funds such as postal savings and insurance funds to support share prices, it said. Policymakers from the ruling LDP, New Komeito and the New Conservative Party will discuss the introduction of capital loss carry-forwards to deal with the risk-averse streak shown by many individual Japanese investors, it said. Under the current tax code, stock market investors are not permitted to utilise capital losses for tax purposes in future years. ys/jr

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