Japan Tobacco Files for MOF Approval for Price Hikes
Tokyo, Aug. 14 (Jiji Press)--Japan Tobacco Inc. <2914> on Tuesday filed for Ministry of Finance approval for its plans to raise the prices of most of its tobacco products in line with the tobacco tax hike set for Oct. 1.
If approved, its cigarette prices will go up by 20-40 yen per pack. Each pack contains 20 cigarettes. The company's mainstay Mevius brand products will sell for 480 yen, up 40 yen from the current level.
The prices of capsules for the Ploom Tech heat-not-burn tobacco device will be raised by 30 yen to 490 yen in the first price hike for the brand.
The tobacco tax is set to be raised by one yen per cigarette. An additional tax hike of 2 yen will be implemented by October 2021.
For some of the Japan Tobacco cigarette brands, the new prices reflect not only the one-yen tax hike in October this year but also increased costs amid sales declines. For the smokeless tobacco device, the price increase roughly equals the tax hike.
[Copyright The Jiji Press, Ltd.]