The governing coalition approved a draft of 2006 economic policy guidelines Monday, recommending an overhaul of the tax system but without mentioning specific tax increases, ruling party lawmakers said.

The move suggests that concrete plans to improve the country's fiscal balance will be left to Prime Minister Junichiro Koizumi's successor. Koizumi plans to step down in September when his term as Liberal Democratic Party president expires.

Despite the coalition's reticence on the tax question, a rise in the consumption tax, currently 5 percent, is widely expected.