A Ministry of Economy, Trade and Industry study panel met Tuesday to discuss revisions to some corporate taxes as part of comprehensive government tax reforms.

The open-door inaugural meeting of the panel, chaired by Ikujiro Nonaka, a professor at Hitotsubashi University's graduate school, was convened by METI with the mission of compiling a report by the end of June.

The 11-member panel will make proposals to the government on tax reforms needed to revive Japan's eroding competitiveness, which is under pressure from foreign competition and deflation at home, ministry officials said.

Basing their measures on the drastic tax reforms undertaken since the 1970s by the U.S. and Britain, the panel is expected to make detailed proposals on tax incentives for research and development and for investment.

The creation of special economic zones that give corporate tax holidays for several years will be discussed as a way to increase investment from abroad as well as within the country, they said.

The panel will also discuss whether to extend the industrial rehabilitation law, which is to expire in March 2003.

The ruling Liberal Democratic Party and the government's Council on Fiscal and Economic Policy, chaired by Prime Minister Junichiro Koizumi, also plan to map out tax reforms around June.

Intellectual property

The government plans to launch a panel in March to bring together academics and experts from the public and business sectors to compile a basic state policy on intellectual property, a government spokesman said Tuesday.

The Strategic Council on Intellectual Property, set up under Prime Minister Junichiro Koizumi, will draft a policy with the aim of revitalizing the economy and making Japanese industry more competitive globally, Chief Cabinet Secretary Yasuo Fukuda said.

Koizumi called for the launch of the panel in his speech at the Diet earlier this month.

The council, to be headed by Hiroyuki Abe, president of Tohoku University, will include the prime minister, the chief Cabinet secretary and ministers in charge of sectors that include telecommunications, science and technology, justice, and education.

Fujio Mitarai, president of Canon Inc., and Isamu Tomitsuka, chairman of the Recording Industry Association of Japan, will also be regular members.