Raising Tobacco Tax for National Defense Budget

Dec.13.2022
Raising Tobacco Tax for National Defense Budget
Japan considers raising tobacco taxes, including on cheaper non-burn cigarettes, to increase defense funding. Prices have already increased in October.

One of the financial resources for boosting national defense is "increasing tobacco taxes". The Liberal Democratic Party is considering raising taxes on heated tobacco products that are cheaper than traditional cigarettes. In fact, cigarette prices suddenly rose in October.


The manager of a tobacco shop strongly opposes the possibility of further price increases, stating, "It's obvious you should start with the places where it's easier to buy, so I'm wondering if I should look into other options." At noon in Tokyo's Shinbashi district, there was a long queue at the smoking area. When asked about people smoking heated tobacco, some complained, "I think smoking anything is bad," while others said, "I'm fine." Various resignations were heard, such as "Isn't there any other way? If the economy is tight." On the other hand, "non-smokers" stated, "I don't smoke, so I don't care how much it costs, but I don't think it's right to spend defense costs on cigarettes." "Doesn't that matter?" was also heard from some.


During a press conference held on the 10th, Prime Minister Kishida emphasized the importance of strengthening defense capabilities, stating that "the objective is not to increase tax revenue, but rather to strengthen and maintain defense capabilities." There is increasing pressure within the ruling party for Prime Minister Kishida to provide a thorough explanation to the public regarding the reasons for strengthening defense capabilities before implementing any tax increases.


Yanagisawa Hidehito "Cabinet Faces Internal Differences of Opinion


Journalist Yanagawa Hideo discussed the lack of coordination within the cabinet, giving the impression that Prime Minister Kishida has failed to unite and work together effectively.


Yuze Yoshio believes that, from our perspective, Mr. Takashi's speech represents a "cabinet disagreement". While the Liberal Democratic Party stated they would carefully explain the reasons for strengthening defense capabilities to the public before implementing tax increases, Yoshio believes this is an internal party stance rather than a widely held belief. In fact, even members within the party are speaking out in a similar way, suggesting their aim is not to discuss tax increases but rather to shake things up within the government. It is crucial to pay attention to what will happen within the Kishida government before the start of the parliamentary session at the beginning of the year.


2FIRSTS will continue to report on this topic, with further updates available on the '2FIRSTSAPP'. Scan the QR code below to download the app.


This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

France’s ANSES Report Reframes the Vape Debate: Harm Reduction Confirmed, Regulatory Barriers Rising
France’s ANSES Report Reframes the Vape Debate: Harm Reduction Confirmed, Regulatory Barriers Rising
France’s top health agency has confirmed that vaping is less harmful than smoking — but not risk-free — reshaping the country’s regulatory trajectory. As Paris withdraws a proposed vape tax and debates stricter ingredient, emissions and youth-protection rules, the ANSES report signals not prohibition, but tighter technical oversight. For manufacturers, retailers and EU policymakers, France may be previewing Europe’s next phase of nicotine governance.
Special Report
Feb.23
Thailand’s DDC Files Complaint Over Online Sales of Nicotine Pouches
Thailand’s DDC Files Complaint Over Online Sales of Nicotine Pouches
Thailand’s Department of Disease Control has lodged a complaint over the alleged online sale of nicotine pouches. The department said its monitoring found the products were being advertised and sold through electronic media, and a further inquiry later identified a physical shop linked to a store in Pathum Thani province.
Mar.23 by 2FIRSTS.ai
2Firsts Flash|PMI Reports 2025 Results as Smoke-Free Products Account for 41.5% of Net Revenues
2Firsts Flash|PMI Reports 2025 Results as Smoke-Free Products Account for 41.5% of Net Revenues
Philip Morris International reported full-year 2025 results on February 6, with smoke-free products accounting for 41.5% of adjusted net revenues, up from 38.7% a year earlier. Total net revenues rose 7.3% to $40.65 billion, while shipment volumes increased 1.4%, widening the gap between revenue and volume growth. Cigarette shipments declined as smoke-free volumes rose 12.8%, driven by heated tobacco, oral nicotine and e-vapor products. Results were released alongside a 9:00 a.m. EST webcast.
Feb.06
West Virginia Bill Seeks to Replace Per-mL Vape Liquid Tax With 50% Sales-Price Tax
West Virginia Bill Seeks to Replace Per-mL Vape Liquid Tax With 50% Sales-Price Tax
West Virginia proposes tax rate adjustments on e-cigarette devices and e-liquids, with penalties for late reporting. Effective from July 1, 2026.
Feb.02 by 2FIRSTS.ai
FDA Highlights Product Characterization as a Foundational Requirement in ENDS PMTA Reviews
FDA Highlights Product Characterization as a Foundational Requirement in ENDS PMTA Reviews
During its ongoing PMTA roundtable, FDA emphasized that product characterization is a foundational element in the review of electronic nicotine delivery systems (ENDS). The agency underscored the need for complete product identifying information, validation and verification of test methods on the specific product type, and the appropriate use of tobacco product master files (TPMFs) to support complex or proprietary ingredients in PMTA submissions.
Feb.10
Russian Lawmaker Says Vape Circulation Licensing Will Be Regulated by Law in the Coming Months
Russian Lawmaker Says Vape Circulation Licensing Will Be Regulated by Law in the Coming Months
Alexander Tolmachev, deputy chairman of the Russian State Duma Committee on Youth Policy, said the issue of licensing vape circulation will be resolved at the legislative level in the coming months. He said a significant share of such products currently on the market are counterfeit, that their real nicotine concentration may be several times higher than stated, and that the composition of the liquid is unknown.
Mar.18 by 2FIRSTS.ai