The Japanese Prime Minister said yesterday his promised income tax cuts would vary according to people's tax brackets.

During a visit to western Japan to mark the 53rd anniversary of the atomic bombing of Hiroshima, Mr Keizo Obuchi said he would ask parliament to approve tax cuts worth more than six trillion yen (£29.2 billion).

"I think an across-the-board cut is the principle of it, but [we must] give consideration to people in tax brackets suffering the most difficulties," Mr Obuchi said, without specifying which groups he would favour. He is to formally seek the tax cuts in his first policy address today to an extraordinary session of parliament.

Tax cuts are a key demand from Japan's trading partners and financial markets, which see a recovery of the world's second-biggest economy as key to boosting the troubled Asian region.