The ruling coalition Thursday recommended scrapping income, residential and corporate tax breaks and raising liquor and tobacco levies in its reform proposals for fiscal 2006, and agreed to discuss a possible consumption tax increase for fiscal 2007.
If all the recommendations are introduced, taxes will rise by at total of some 2 trillion yen in fiscal 2006 beginning next April.
The text of Thursday's proposal calls for "a complete overhaul of the tax system, including consumption taxes, in fiscal 2007."