Tax Commission chief Hiromitsu Ishi said Wednesday he does not favor cutting taxes to stimulate the economy; instead he would broaden the tax base to better help the government fill its depleted coffers.

"A small-scale tax cut will not be effective to boost the economy, and I believe the tax system should be neutral for the economy," he said.

Ishi said he is unmoved by growing calls for a tax cut by the ruling bloc because 25 percent of individuals and 70 percent of firms avoid taxes via various deductions and special breaks that are "hollowing out" the tax structure.

"We want to discuss expanding the tax base of individual taxpayers by lowering the minimum taxable income" when the tax panel begins debating drastic tax reforms in January, he said.

A tax subcommittee will release an interim progress report in the fall, but it will mainly focus on including every viable measure in the fiscal 2003 reform plan, he said.

"We will provide updates on major issues concerning tax reforms once every several months," he added.

On separating the roles of the Tax Commission and the Council on Economic and Fiscal Policy, Ishi said his panel will cover special fields, such as how to review deductions, while the council addresses broader issues, including setting the tax burden ratio.

In reference to calls from council members for tax cuts, he said the two panels will have to come up with a unified vision by the time discussions on tax reform begin in mid-January.