The Democratic Party of Japan-led government plans to postpone introducing the DPJ-pledged corporate tax cut for small and midsize companies in fiscal 2010, sources said Wednesday.

Amid a sharp fall in tax revenues, the government's key tax panel is inclined to give up on introducing it in the year starting in April, the government sources said.

Prime Minister Yukio Hatoyama's Cabinet, currently designing the fiscal 2010 budget, is increasingly finding it difficult to raise enough money for key promises aimed at buoying the sagging economy.