The Liberal Democratic Party has proposed around ¥300 billion in tax cuts to invigorate business investment, a pillar of Prime Minister Shinzo Abe's economic growth plan, executives of the LDP's tax panel said.

The tax reduction plan, intended to soften the blow of the first stage of the consumption tax hike next April to 8 percent from 5 percent, is expected to be included in an upcoming stimulus package.

The second stage will complete the doubling of the sales tax in October 2015.