JT Cigarette Prices to Go Up to Reflect Consumption Tax Hike
Tokyo, Aug. 6 (Jiji Press)--Japan Tobacco Inc. <2914> said Tuesday that it has filed for approval from the Finance Ministry to raise cigarette prices in tandem with the planned consumption tax increase on Oct. 1.
If granted, most of the 115 cigarette brands will be 10 yen more expensive to reflect the tax hike from 8 pct to 10 pct, with the price of mainstay Mevius going up to 490 yen per 20-cigarette pack and that of Seven Stars to 510 yen per pack.
JT will separately raise the price of a pack of 20 refill tobacco capsules for the new Ploom S heat-not-burn device by 10 yen to 490 yen, in line with the government's decision to raise in stages the currently low tobacco tax rate for such capsules to the level for cigarettes by 2022. The per-pack price of refills for the conventional Ploom Tech device will remain at 490 yen, the company said.
Meanwhile, cigarettes labeled as "third-class" products by JT's predecessor, Japan Tobacco and Salt Public Corp., will see the preferential tobacco tax rate for them evoked at the end of September, prompting sharp price hikes of 90 yen for six brands including popular Golden Bat, Echo and Wakaba, currently sold for 330 yen, 350 yen and 360 yen, respectively. The three old cigarette brands will disappear when they run out of stock and will be fully replaced by cigar brands with the same namesakes.
[Copyright The Jiji Press, Ltd.]