The tobacco tax hike that took effect Tuesday will probably not boost government revenue because some smokers will kick the habit, Finance Minister Masajuro Shiokawa said Tuesday.
"I expect that many smokers will not quit smoking with the rise in the price at this level," Shiokawa said at a news conference. "But some will, so tax revenues will probably be about the same. I don't think we can expect a tax revenue increase."
The tax hike raised the cost of most brands sold in Japan. One of the most popular, Mild Seven Light, went up 20 yen per pack to 270 yen. Some other brands were raised to 280 yen from 250 yen per pack.
Shiokawa said it is unlikely that the tobacco tax will be raised again in the near future.