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Japan Tobacco seeks approval for price hikes from Finance Ministry

JIJI

Japan Tobacco Inc. on Tuesday filed for Finance Ministry approval of its plans to raise the prices of most of its products in line with the tobacco tax hike set for Oct. 1.

If approved, its cigarette prices would go up by ¥20 to ¥40 per 20-cigarette pack.

The company’s mainstay Mevius brand products would sell for ¥480, up ¥40 from the current level.

The prices of capsules for the Ploom Tech heat-not-burn tobacco device would be raised by ¥30 to ¥490, the first price hike for the brand.

The tobacco tax is set to be raised by ¥1 per cigarette. An additional tax hike of ¥2 will be implemented by October 2021.

For some of the Japan Tobacco cigarette brands, the new prices reflect not only the ¥1 tax hike in October this year but also increased costs amid declining sales. For the smokeless tobacco device, the price increase roughly equals the tax hike.

Among other tobacco-makers, Philip Morris Japan Ltd. has already filed for ministry approval for its planned price increases for its mainstay Marlboro cigarette brand and its iQOS heat-not-burn tobacco device. British American Tobacco Japan Ltd. is also considering a price revision.