Prime Minister Junichiro Koizumi on Thursday proposed making tax cuts due in fiscal 2003 retroactive to the current fiscal year as part of a second antideflation package.

The proposal, which came at a meeting of key economic ministers and ruling coalition leaders, signifies a shift in policy toward quick cuts. Koizumi had been reluctant to implement tax cuts by the end of fiscal 2002, fearing doing so could force him to abandon his 30 trillion yen cap on new government bonds.

"Some tax reform measures for fiscal 2003 can be implemented from Jan. 1," Koizumi told reporters. "I want such a step to be discussed as part of desirable tax reforms."