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.


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