Japan - Ruling party plans tobacco tax hike in 2009..

December 2, 2008 - The Japanese ruling Liberal Democratic Party (LDP) plans to push for a tobacco tax hike for fiscal 2009 starting in April, reported the Japan Times on Thursday, November 27. 2008. The tax hike of JPY 3 (EUR 0.0253, USD 0.0321) per cigarette is part of a set of tax reform recommendations for next fiscal year. It sould be the first hike on tobacco since fiscal 2006, and would raise the price of a pack of cigarettes by around JPY 60 (EUR 0.5052, USD 0.6423). The LDP is looking to allocate some of the additional revenue to tobacco farmers, who will likely be hit by a slump in tobacco consumption, party sources said.

A pack of cigarettes usually sells for about JPY 300 (EUR 2.53 USD 3.22). A health study has found if the cigarette price was JPY 1,000 (EUR 8.44, USD 10.73) a pack would save 190,000 lives.

Reference: Ruling party plans tobacco tax hike, Tobacco Journal International, 11/28/2008.

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