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.
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