The Liberal Democratic Party tax panel plans to cut more than 3 percentage points off Japan's effective corporate tax rate of 35 percent in fiscal 2015 and 2016, members of the party said.

The idea is to make a 2.51-point cut in fiscal 2015, which starts in April, and the additional cut the following year. The plan was largely approved by Prime Minister Shinzo Abe, who heads the LDP, during talks Friday with Takeshi Noda, chairman of the party's Research Commission on the Tax System.

Afterward, Noda told reporters that Abe gave the nod to the panel's reform proposals.