Japan Tobacco called on the government to sell its 50 per cent stake in the company rather than hike the tobacco levy to fund earthquake reconstruction.

A sale of the 5 million shares owned by the government would raise JPY 1.7 trillion  (EUR 15.7 billion) to fund rebuilding after the 11 March earthquake and tsunami, JT said in a statement.
JT said it was commenting on reports the government is considering raising the tobacco excise tax or selling its stake in the tobacco company to raise money. A tax hike last October reduced domestic sales volume by about one-fifth, and therefore another increase can be expected to further reduce volume, and subsequently tax revenue, according to JT.
“We would like the government to move forward with the selling of its entire stake in JT, which would reliably increase fiscal revenue,” the tobacco company said. “Full privatisation of JT has been the government's fundamental policy since the monopoly was reformed. It is also what the company has been calling for in order to manage the business competitively in an environment of equal footing against global tobacco companies,” the company said. (ci)