The government Tax Commission, in a set of recommendations to the prime minister finalized Wednesday, called for cautious discussions about limiting the use of consumption tax revenues for welfare purposes.

The panel's suggestion may affect talks between the Liberal Democratic Party and its ally-to-be, the Liberal Party, both of which are considering limiting the use of the 5 percent consumption tax.

In the report prepared for Prime Minister Keizo Obuchi, the government advisory panel says the issue must be carefully examined from various perspectives, including social welfare reform and policies in other countries.