Japan to Raise Tobacco Tax by ¥3 in Stages (News)


Tokyo, Dec. 4 (Jiji Press)—Japan's government and ruling coalition plan to increase the tobacco tax by ¥3 per cigarette, informed sources said Monday.

To avoid a steep plunge in tax revenue due to a potential decline in consumption, the tax will be raised in stages of ¥1 over four years starting in fiscal 2018.

The government and ruling bloc also plan to raise taxes on heat-not-burn tobacco products, which have attracted many users recently. Details will be discussed later. These products have lower taxes than cigarettes.

The tobacco tax increase will be included in the ruling bloc's fiscal 2018 tax reform package, expected to be due out on December 14.

Currently, the tax per cigarette stands at some ¥12.2. The tobacco tax was last raised in October 2010, by ¥3.5 per cigarette.

[Copyright The Jiji Press, Ltd.]

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