Philip Morris Japan KK and British American Tobacco Japan Ltd. both said Wednesday they have asked the Finance Ministry to approve price increases for their cigarettes in line with a planned tobacco tax hike in July.
The government plans to raise taxes by 0.85 yen per cigarette, starting July 1. A standard pack contains 20 cigarettes.
Philip Morris is planning to raise the list prices of 41 of its 62 products by 30 yen per pack, a margin that exceeds the nearly 20 yen tax hike. The increases will apply to 13 products sold under the Marlboro brand.
Both Philip Morris and BAT Japan say price rises in excess of the tax hike are needed because of higher costs incurred by the introduction of new vending machines designed to prevent purchases by minors.