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.

Scandinavian Tobacco Group Reports Q3 2025 Results and Narrows Full-Year Guidance
Scandinavian Tobacco Group Reports Q3 2025 Results and Narrows Full-Year Guidance
Scandinavian Tobacco Group (STG) reported net sales of DKK 2.4 billion for Q3 2025, in line with last year. EBITDA before special items reached DKK 519 million with a 22.0% margin. Handmade Cigars and Next Generation Products saw organic growth, while Machine-Rolled Cigars and Smoking Tobacco declined. The company narrowed its full-year guidance.
Nov.12 by 2FIRSTS.ai
Al Fakher Parent Company Plans U.S. Listing in 2026 at $1.75 Billion Valuation
Al Fakher Parent Company Plans U.S. Listing in 2026 at $1.75 Billion Valuation
According to Bloomberg, Dubai-based hookah brand owner Advanced Inhalation Rituals (AIR) plans to go public on Nasdaq in the first half of 2026 through a merger with a Cantor Fitzgerald-backed SPAC. The deal values the combined company at USD 1.75 billion under the ticker “AIIR.”
Nov.11
Lancet Study Finds Rising Use of Nicotine Pouches in Britain
Lancet Study Finds Rising Use of Nicotine Pouches in Britain
A study published in The Lancet has found that nicotine pouch use is increasing in Britain, particularly among young men. Usage among people aged 16 to 24 has risen sharply since early 2022.
Dec.17 by 2FIRSTS.ai
Romania Fines Philip Morris and Distributors Over IQOS Price Fixing
Romania Fines Philip Morris and Distributors Over IQOS Price Fixing
Romania’s Competition Council has found that Philip Morris Trading SRL and two distributors engaged in agreements to fix resale prices and promotional discounts for IQOS heated tobacco products.
Dec.19 by 2FIRSTS.ai
BAT Pauses U.S. Launch of Unlicensed Vuse One Vape amid FDA Crackdown — Reuters
BAT Pauses U.S. Launch of Unlicensed Vuse One Vape amid FDA Crackdown — Reuters
British American Tobacco has paused the U.S. pilot launch of its unlicensed Vuse One vape amid intensified FDA enforcement.
Oct.28 by 2FIRSTS.ai
BAT Malaysia Reports Q3 Results: Net Profit Plummets 89.5%, Stock Price Drops 15%
BAT Malaysia Reports Q3 Results: Net Profit Plummets 89.5%, Stock Price Drops 15%
BAT Malaysia's Q3 results show a sharp 89.5% drop in net profit to RM7 million (approximately $150,000 USD), with revenue also falling to RM300 million (approximately $6.4 million USD). The company attributed the decline to new regulatory requirements, including pictorial health warnings and the retail display ban. Its stock dropped 15.25% to RM4.78 (approximately $1.02 USD).
Oct.31 by 2FIRSTS.ai