The head of the government's tax panel said Monday income tax cuts and residential tax breaks should be abolished in January 2007.

Deliberations at the Tax Commission will be "in a direction toward abolition," Hiromitsu Ishi, chairman of the panel, said during an interview.

Ishi, a professor at Chuo University, was referring to discussions the commission is to launch Tuesday on compiling a package of tax reform proposals in late November for fiscal 2006.