Japan Tobacco forecasts the impact of higher excise taxes and price hikes will reduce domestic sales volume by 18.5 per cent in the 12 months through September, 2011.

Higher cigarette taxes and the price increases of last October have had more impact on volume than the 11 March earthquake, said JT spokesman Hideyuki Yamamoto.

Volume supply capability is expected to return to normal by the end of June, measured against volume supplied in the month prior to the March earthquake, Yamamoto said. In April, the month after the earthquake, volume capability was an estimated 25 per cent of what was supplied in February, he said. (pi)