Prime Minister Taro Aso said March 28 that the government might make substantial cuts in the gift and inheritance taxes to put the financial assets of the elderly to work in stimulating consumption.

Aso unveiled the plan in the city of Kochi while answering questions on an additional economic package being put together by the government and the ruling parties.

"(The government) will study reducing the tax by designating a period of years in which the elderly can give their money to their sons and grandchildren to buy houses and cars," Aso said.

Pointing out that Japan's household assets amount to about ¥1.4 quadrillion, the prime minister said the money would not be used unless passed from the elderly to the younger generation.