After a key meeting with the ruling party's tax council, he announced personal income tax cuts would total four trillion yen from the start of next year and corporate tax cuts about two trillion yen.

The tax plans go to a special cabinet meeting tomorrow of new prime minister Keizo Obuchi, who is expected to officially announce the results of the meeting in his first policy speech to parliament on Friday.

The 78 year old Miyazawa said the maximum tax rate would be slashed from 65 per cent to 50 per cent and the rest of the money would come from a uniform reduction.

"Four trillion yen of individual income tax cuts will be implemented on a combination of the cut in the highest income tax bracket tax rate of 50 per cent from 65 per cent and the introduction of a fixed level of income cuts across the board," Miyazawa told a newsconference.

Corporate tax cuts in the council-approved proposal "may exceed two trillion yen" when a final draft was presented to parliament, the finance minister said.

"I am pleased that we can offer important measures at a time when (Japan) attracts international attention."

Obuchi vowed in his first news conference Friday, a day after his appointment, to deliver "income and corporate tax cuts more than six trillion yen as soon as possible."