The Tax Commission on Tuesday proposed a reform plan for fiscal 2003 that would attempt to boost the economy by allowing tax cuts for corporate activity and to secure more revenue by reducing exemptions for individuals.
Although the commission, an advisory panel to Prime Minister Junichiro Koizumi, called for increasing taxes on eight items to mend the country's fiscal health, it also said that the focus in fiscal 2003 should be on tax cuts to support the economy.
The report was submitted to the prime minister on Tuesday. Political maneuvering over tax reform is expected to mount toward mid-December.