The government and the ruling parties agreed Friday to devise ways to widen the uses for auto-related tax revenue away from only road construction.

Although the changes will be implemented in fiscal 2007 and not fiscal 2006 as Prime Minister Junichiro Koizumi had initially intended, the policy shift has been considered "quite difficult" to achieve, Chief Cabinet Secretary Shinzo Abe told a news conference.

The government and ruling coalition of the Liberal Democratic Party and New Komeito agreed to will come up with concrete plans next year "based on the premise that the special-purpose revenues will be used for general purposes," a document released after their meeting says.

The special-account revenues from vehicle-related taxes typically have gone to building roads, but the government's recent fiscal austerity program, particularly on road construction, is expected to result in a large surplus in that revenue in fiscal 2007, the statement says.

It also says the current tax rates on vehicle purchases, ownership and fuel consumption will remain the same.

This is despite the auto industry's request that the provisionally hiked rates be reverted. It basically means those higher rates will be permanent, according to Abe.

Allowing more flexible use of auto-related tax revenue has so far failed to materialize due to strong opposition from the auto industry, local governments and LDP lawmakers elected from areas with low populations, where the residents still want more roads built.