The head of the Tax Commission said Tuesday that the panel will not prioritize tax cuts in discussions on comprehensive tax code reform despite a proposal do so by Finance Minister Masajuro Shiokawa.
"Our discussions will not be affected" by Shiokawa's proposal, said Hiromitsu Ishi, head of the commission.
Earlier in the day, Shiokawa indicated the panel should place priority on tax cuts to stimulate the economy. He also said some tax cuts may be mapped out and implemented in fiscal 2002, which starts April 1.
The government usually compiles tax reform measures in December for implementation in the coming fiscal year.
Prime Minister Junichiro Koizumi is seeking to overhaul the tax system as part of his call for economic structural reforms. The government plans to compile a basic policy on tax reform in June.
Ishi indicated his panel will promote discussions to achieve fairness and neutrality in the tax system.
He maintains the system has been distorted by tax cuts implemented in a series of past economic stimulus packages and has called for abolition of some breaks.