Tax hike planned for cigarettes in Japan

The government is planning a tax hike on cigarettes next financial year, which would send prices for a pack of 20 from around 300 yen to between 340 and 360 yen.

While the Health Ministry’s proposal for a one-off boost of 10 yen per cigarette is also still on the table, a series of smaller increases has also been suggested.

A hefty dent in smokers’ wallets was part of the Democratic Party of Japan’s election manifesto in an attempt to improve public health. However, the Ministry of Finance has campaigned against such a hike, arguing that sales volumes could drop off sharply.

Cigarette taxes have been raised three times since 1998, but only by 1 yen per cigarette, ensuring that tax revenue stays around the 2 trillion yen mark.

However, “from an environmental and health perspective, there’s no choice but to raise the tax,” Prime Minister Yukio Hatoyama has stated. The Finance Ministry has calculated a plan to stabilize tax revenue and limit the damage to tobacco farmers.

A government tax committee will finalize its outline for a reform of the tax system by Dec. 11.

Tax revenue from cigarettes in fiscal 2007 stood at 2.27 trillion yen. They are currently taxed at 8.7 yen per cigarette.

source: Mainichi Daily News

Similar Posts:

If you enjoyed this post, make sure you subscribe to my RSS feed!