Japanese Consumers Facing Double Hit
March 27, 2026 by tobaccoreporter.com
Japanese Consumers Facing Double Hit
Japan will implement the first phase of tax hikes on tobacco and corporate income from April 1 to raise funds for defense spending. The tax increases will continue in October and January 2027, aiming to generate ¥1.3 trillion ($8.2 billion) by that year. Philip Morris Japan and Japan Tobacco plan to raise prices on tobacco products. The government anticipates tobacco tax revenue to rise annually, reaching ¥212 billion ($1.3 billion) as further levies are enforced. This initiative supports Japan's defense budget, exceeding the 2% GDP target with over ¥9 trillion ($56.7 billion) allocated for fiscal 2026.
15.40% of the adult population are current smokers. There are approximately 16.9 million current smokers in Japan 24.20% of men are current smokers but only 7.10% of women.
SOURCE: GSTHR
