Society

In unusual move, tobacco-maker requests higher tax on cigarettes

Nov 05 (Japan Times) - British American Tobacco Japan Ltd. is demanding a higher tax on cigarettes as part of Japan’s fiscal 2022 tax system reform, it was learned Thursday.

The company has submitted the request in writing to a group of lawmakers of the ruling Liberal Democratic Party, informed sources said.

The unusual move by a tobacco-maker comes as Japan is slated to raise its tobacco tax only for heat-not-burn tobacco products in October 2022, which is expected to make some of such products more expensive than cigarettes.

British American Tobacco Japan is concerned that this would work negatively for its strategy of shifting its focus from cigarettes to heat-not-burn products.

The company is also requesting that the tax on heat-not-burn tobacco be increased at a slower pace than that for cigarettes in the medium to long run.

The Japanese arm of British American Tobacco sells cigarettes under Kent and other brands, as well as glo heat-not-burn devices. ...continue reading

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