Tobacco Tax Hike of ¥3 Per Cigarette Eyed in Japan (News)
Tokyo, Nov. 8 (Jiji Press)—Some Japanese government and ruling camp officials have proposed a tobacco tax increase of ¥3 per cigarette over several years beginning in October 2018, informed sources said Wednesday.
The plan has emerged as part of discussions on tax system reform for fiscal 2018, which starts next April.
With the tobacco tax hike, the officials aim to cover an expected revenue drop from an envisaged program to apply a reduced tax rate to some items when the consumption tax is raised from the current 8% to 10% in October 2019.
But the government is likely to face difficulties winning support for the plan as many in the ruling Liberal Democratic Party strongly oppose a tobacco tax hike, the sources said.
Since the tobacco tax was raised by ¥3.5 per cigarette in October 2010, Japan has collected ¥12.2 apiece in tax.[Copyright The Jiji Press, Ltd.]