Japan Tobacco Inc. (JT) has announced that it has applied to the Ministry of Finance for approval to amend the retail prices of its tobacco products in Japan in conjunction with the planned excise tax increase on 1 October 2021.

JT has applied for the retail price amendment for a total of 173 products, including 127 cigarette products, 18 cigarillo products, three pipe tobacco products, three cut tobacco products, 22 snuff tobacco products. According to JT, the Japanese domestic tobacco market continues to experience decreasing sales volumes due to structural factors including the aging and declining adult population together with increasingly stringent smoking restrictions. As a result, the costs for maintaining the product quality and services are rising. Under these circumstances, while JT has been implementing cost optimisation measures in line with a projected further decline of sales volume, it has become even more challenging to maintain the same quality and services that meet our consumer’s satisfaction. In this context, JT has applied to amend the retail prices of cigarettes, which exceeds the excise tax hike of cigarettes (JPY 1 (USD 0.009) per stick), revised tax structure for light weight cigarillos, while taking into account further increases in costs. JT has decided to amend the retail prices of its tobacco products, however such increase varies among different brands and products, to ensure that the quality of each product will be maintained and that consumer expectations continue to be met. Furthermore, JT is planning to submit another application for amending the retail price of some brands, including heated tobacco products. The proposed retail prices will take effect on 1 October 2021, subject to approval from the Ministry of Finance.