Japanese Prime Minister Kishida Fumio says he has no immediate plans to revise taxes on capital gains. He had previously indicated the change could be a way to correct the country's wealth disparities.
Kishida became prime minister pledging to expand the middle class by reviewing how wealth is distributed.
This included possible changes to capital gains taxes.
A flat tax of 20 percent is levied on financial gains in Japan. Critics say the rate favors the wealthy.
But there are concerns that raising it could make stocks less attractive and weigh on the markets.
On Sunday, Kishida told reporters that he will prioritize other measures, such as tax incentives to encourage wage increases, assistance to subcontractors and a review of prices for public services, including caregiving and childcare.
Chief Cabinet Secretary Matsuno Hirokazu was asked on Monday whether Kishida's comments were influenced by a recent decline in Tokyo stocks.
Matsuno responded that the government does not comment on daily share price movements.