The Japan Chamber of Commerce and Industry on Thursday adopted a five-point emergency recommendation on economic policies for the government that includes a call for bold action to fight deflation.

The government should take decisive action, including cutting taxes and carrying out additional fiscal steps if necessary, the JCCI said in the recommendation, adopted at a meeting Thursday.

"The government should first overcome deflation and stabilize the economy," the organization said. "Amid the prolonged deflationary economy, business at small and midsize companies that support the nation's economy is being strongly battered."