A government tax panel called Wednesday for a corporate tax cut in an attempt to boost foreign investment despite budgetary constraints, according to a statement presented by its chief, Hiroko Ota.

Ota, a former finance minister who heads the panel, which has been newly created under the Tax Commission to discuss matters related to corporate taxes, added in the statement that it is vital to broaden the tax base to prevent revenue from falling sharply in the wake of such a cut.

The group, which held its first meeting Wednesday, plans to continue studying how a corporate tax cut would affect the economy and report the outcome to the general meeting of the panel, which is an advisory body to Prime Minister Shinzo Abe.