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A group of ruling Liberal Democratic Party lawmakers decided Tuesday to oppose the taxation of a new public corporation that will take over postal services, LDP officials said.

The group will soon begin discussing the matter with Finance Minister Masajuro Shiokawa and Toranosuke Katayama, minister of public management, home affairs, posts and telecommunications, the officials said.

On Thursday, Shiokawa said he and Katayama agreed to tax the proposed corporation, just as the government taxes other private firms, and to require it to pay premiums for governmental deposit guarantees on its postal deposits.

Last weekend, Katayama said the government plans to submit bills related to the proposed public corporation to the Diet by the end of the month, on the instructions of Prime Minister Junichiro Koizumi.

The LDP officials do not believe deliberations over the bills, including the taxation issue, will be concluded this month.

They said some group members also questioned the necessity of paying premiums, arguing that the corporation’s deposits won’t be at risk because it won’t offer loans as private-sector financiers do.

The public corporation is slated to be established next year to take over the current state-run mail and postal savings monopoly.

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