In an unusual move, British American Tobacco Japan said Monday it has withdrawn its application filed with the finance ministry last month to raise the prices of its cigarette brands.

The third-largest seller of tobacco in Japan withdrew the application following recent calls by the government for smoking bans in public places which, if implemented, could cause demand for tobacco to plunge. In late February, the health ministry issued a nonbinding instruction urging local governments across Japan to work toward a total smoking ban in public places to help reduce health risks linked to passive smoking.
Subject to finance ministry approval, BAT Japan had planned to raise prices of all of its 50 cigarette brands, including Kent, by JPY 20 (EUR 0.16) per pack from 1 June. In announcing the withdrawal of its application, the company said it needed to watch trends in the tobacco market for the time being. Earlier this month, the finance ministry approved an application filed by Philip Morris Japan KK, the second-largest seller of tobacco in Japan, to raise prices of its cigarette brands, including Marlboro, by JPY 20 per pack from 1 June. (pi)