The government may cut taxes in fiscal 2002, which starts April 1, instead of waiting until fiscal 2003 if the economy shows signs of worsening, officials said.
The government is also considering securing revenues by selling off government-held assets, a measure intended to help Prime Minister Junichiro Koizumi keep his pledge of limiting issuance of fresh government bonds to 30 trillion yen in the current fiscal year, the officials said Wednesday.
With calls rising among the coalition parties for quick steps to fight deflation and spur demand among individual investors, the government decided it needs to be ready to implement tax reforms in fiscal 2002, the officials said.