A government task force said Friday that the corporate tax rate should be cut but that the number of paying companies should be expanded, emphasizing that the current system is limited only to some profitable firms.

The group, set up under the Tax Commission to discuss corporate tax issues, also said broadening the tax base would help secure financial resources to cover a "potential decline" in tax revenue.

The proposal was released a day after Prime Minister Shinzo Abe said he was eager to repeat his vow to cut the corporate tax rate when his administration issues its new blueprint for economic and fiscal policy over the longer term.