Japanese Finance Minister Kiichi Miyazawa said Prime Minister Keizo Obuchi will announce tax cuts “substantially” greater than the expected $41.7 billion during his policy speech Friday. He did not mention a specific amount.
Obuchi will present his government goals in the speech, most of which will focus on plans to rescue the debt-strapped banking system and bring the economy out of its worst recession in more than half a century.
The new prime minister has already pledged to reduce income and residential taxes and corporate taxes.
Two senior ruling Liberal Democratic Party politicians told Bloomberg News that the tax cuts may amount to more than $47 billion.
Miyazawa’s remarks came as the new Cabinet took its first step to weed out weak banks and protect their customers. The Cabinet submitted legislation to parliament Wednesday.
