Tobacco tax hike of 3 yen per cigarette eyed in Japan
Jiji -- Nov 09
Some Japanese government and ruling camp officials have proposed a tobacco tax increase of 3 yen per cigarette over several years beginning in October 2018, informed sources said Wednesday.

The plan has emerged as part of discussions on tax system reform for fiscal 2018, which starts next April.

With the tobacco tax hike, the officials aim to cover an expected revenue drop from an envisaged program to apply a reduced tax rate to some items when the consumption tax is raised from the current 8 pct to 10 pct in October 2019.

But the government is likely to face difficulties winning support for the plan as many in the ruling Liberal Democratic Party strongly oppose a tobacco tax hike, the sources said.

Since the tobacco tax was raised by 3.5 yen per cigarette in October 2010, Japan has collected 12.2 yen apiece in tax.

News source: Jiji
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