A panel of Japan's main ruling Liberal Democratic Party says it plans to propose raising multiple taxes to fund the country's growing defense expenditures.

Senior officials of the LDP's tax commission say they are studying a plan that will center on raising corporate taxes. They say tax breaks are being considered for small and medium-sized companies.

The panel is also deliberating an increase in the taxes on heat-not-burn tobacco products, which are cheaper than cigarettes.

Plans are also being studied to use part of the special income tax to fund Japan's reconstruction of areas devastated by the 2011 earthquake and tsunami.

Prime Minister Kishida Fumio says Japan will need more than 1 trillion yen, or about 7.3 billion dollars, to implement a defense budget that will amount to 2 percent of GDP in fiscal 2027, and to maintain a stable defense capability.

Kishida says the security environment surrounding Japan is extremely severe, citing the escalation of North Korea's provocative actions as one example.

He says concrete measures must be implemented as soon as possible and the government must provide thorough explanations to the public to win their trust.

The LDP and its junior coalition partner Komeito are working to put together an outline on tax reforms for fiscal 2023 by the end of this week. But some members of the LDP remain opposed to discussions on tax hikes.