The ruling coalition announced a package of tax reforms for fiscal 2002 on Friday evening that will result in an estimated revenue loss of about 30 billion yen.
The reforms are less drastic than past packages because the government has no money with which to fund a major tax break and Prime Minister Junichiro Koizumi has set a 30 trillion yen cap on new bond issues, according to government officials.
Enactment of the proposals will cut national tax revenue in fiscal 2002 by 20 billion yen and local tax revenue by 10 billion yen, a senior member of the Liberal Democratic Party's tax panel said.