The Diet on Friday approved revisions to the Passport Law that will facilitate the introduction of a new type of passport featuring integrated circuit chips.
The move is aimed at countering forgery efforts and also forms part of an antiterrorism drive.
The revised law passed by the House of Councilors features a new provision allowing for personal data to be stored electromagnetically on the passport. The Foreign Ministry aims to issue IC passports from next March.
The new law also sees the maximum penalty for fraudulent procurement and illegal use of passports raised to five years in prison or a 3 million yen fine, up from three years' imprisonment or a 300,000 yen fine.
IC chips containing holders' personal data, as well as proof of issuance, will be implanted in the new passports.
The United States has been calling on Japan and other visa-exempt countries to introduce IC passports. It will require all foreigners without IC passports to obtain visas to enter the country, beginning Oct. 26.
Holders of non-IC passports issued prior to Oct. 26, however, will in principle be exempt from the new rule.