Lib Dem MPs call for tax cuts on heated tobacco products

Apr.17
Lib Dem MPs call for tax cuts on heated tobacco products
LDP lawmaker Tanaka calls for tax breaks on heated tobacco products, government remains skeptical on harm reduction benefits.

Key points:

Tax Reform Proposal: Liberal Democratic Party lawmaker Tanaka Kazunori advocates for providing tax breaks to the heated tobacco industry in order to encourage its growth from a harm reduction perspective.

Government position: Finance Minister Kato Katsunobu stated that there is no clear evidence proving that heated tobacco products are less harmful, therefore the government does not support differentiated tax rates.

Industry Impact: The government plans to gradually increase tobacco taxes starting in 2026, and will harmonize the tax rates of heated tobacco products with traditional cigarettes.


According to a report from Kanaloco on April 15th, Japanese Liberal Democratic Party member Kazunori Tanaka(田中和德) called for the promotion of heated tobacco products from a "harm reduction" public health policy perspective during a meeting of the Lower House Financial Affairs Committee on that day. He also suggested that this type of product should receive certain tax benefits in future tax reforms.

 

Tanaka pointed out that heated tobacco products do not produce smoke during use, which helps reduce the risk of secondhand smoke exposure. He advocates for promoting heated products to alleviate smoking-related public health issues. He also questioned the government's proposed tax reform, suggesting that applying the same tax rate to heated tobacco and traditional cigarettes may not be conducive to achieving harm reduction goals.

 

According to the current plan of the Japanese government, as part of efforts to strengthen defense finances, tobacco taxes will be increased in two stages in April and October of 2026. Under the current tax system, the tax rate on heated tobacco products is lower than that of cigarettes. After the adjustment, it is expected that the price of each pack (20 sticks) will increase by approximately 70 Japanese yen (0.5 USD) to achieve a consistent tax burden between the two types of products.

 

Finance Minister Kato Katsunobu responded by stating that there is currently no conclusive evidence showing that the harmfulness of heated tobacco products is significantly lower than that of traditional cigarettes, therefore it is not appropriate to give differential tax treatment.

 

Tanaka responded by saying that he has requested the Ministry of Health, Labour, and Welfare to conduct related research, but progress has been limited so far. He humorously refuted Kato's statement by saying, "I myself am also a heated tobacco user, and currently in good health.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Goldman Sachs: Chinese Brands Geek Bar and Breeze Surge in U.S. Market as Juul, Vuse Lose Share
Goldman Sachs: Chinese Brands Geek Bar and Breeze Surge in U.S. Market as Juul, Vuse Lose Share
Chinese brands Geek Bar, Raz, and Breeze are quickly rising in the U.S. e-cigarette market, now holding a combined 25.1% share, Goldman Sachs reports. While Vuse and Juul lost ground, Geek Bar Pulse jumped 729%, Raz 233%, and Breeze 105% over the past year.
May.22 by 2FIRSTS.ai
World Vape Show Dubai 2025: Flip-Cap Vapes Emerge as Top Trend with Rotating Mouthpiece Tech
World Vape Show Dubai 2025: Flip-Cap Vapes Emerge as Top Trend with Rotating Mouthpiece Tech
E-cigarettes with flavor switching feature showcased at World Vape Show Dubai 2025, offering users a variety of e-liquid options.
Jun.30 by 2FIRSTS.ai
Wisconsin Vape Distributor Sues State Over New Fines for Unauthorized Products
Wisconsin Vape Distributor Sues State Over New Fines for Unauthorized Products
Wisconsin vape distributors are suing the state over a new law fining sales of FDA-unauthorized products, effective July 1, with $1,000 daily penalties for non-listed items from September. They argue it’s unconstitutional and threatens the industry. Similar laws exist in 14 states, though Iowa’s was halted. Experts urge balancing vaping’s quit-smoking potential with youth prevention as U.S. teen vaping rates decline.
Jul.11 by 2FIRSTS.ai
Philippine Health Department Teams Up with High School Students in Anti-Vaping Campaign
Philippine Health Department Teams Up with High School Students in Anti-Vaping Campaign
The Philippine Department of Health has partnered with the country's first student-led anti-smoking committee to tackle the surge in youth tobacco and e-cigarette use. The campus-based health campaign focuses on exposing industry marketing tactics targeting young people.
Jul.01 by 2FIRSTS.ai
Ireland to Ban Flavored E-Cigarettes, Advertising; Industry Warns 220,000 Vapers at Risk
Ireland to Ban Flavored E-Cigarettes, Advertising; Industry Warns 220,000 Vapers at Risk
Ireland plans to ban flavored e-cigarettes, introduce plain packaging, and restrict in-store displays and advertising. The Responsible Vaping Ireland group warns the move could harm small businesses and reverse progress in reducing smoking. Since 2015, over 225,000 adults have quit smoking with e-cigarettes, making up nearly a quarter of quitters in 2023.
Jun.03 by 2FIRSTS.ai
WHO Global Tobacco Report 2025: 7 Countries One Step Away from Full Compliance, 40 Fall Short of Best Practice Standards
WHO Global Tobacco Report 2025: 7 Countries One Step Away from Full Compliance, 40 Fall Short of Best Practice Standards
The WHO's 10th Global Tobacco Report shows 6.1 billion people are covered by at least one MPOWER measure. Four countries are fully compliant, while 40 still fall short. The report highlights progress on tobacco health warnings.
Jun.27 by 2FIRSTS.ai