Japan won't raise taxes to fund $65 billion chips aid, industry minister says

FILE PHOTO: Japan's Minister of Economy, Trade and Industry (METI) Yoji Muto arrives at Prime Minister Shigeru Ishiba's official residence in Tokyo, Japan October 1, 2024. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) - Japan's government is not planning any tax hike to finance its 10 trillion yen ($65 billion) plan to support domestic semiconductor and artificial intelligence projects, industry minister Yoji Muto said on Tuesday.

Muto's remarks came a day after Prime Minister Shigeru Ishiba unveiled the aid to boost the country's technology sector but said the government will not issue deficit-covering bonds to fund the plan.

($1 = 153.9600 yen)

(Reporting by Kantaro Komiya; Editing by Christian Schmollinger)