Japan on Friday imposed the biggest tax hike on cigarettes in its history, with some prices going up nearly 40 percent in a bid to encourage more people to quit in a country regarded as a smokers’ haven.
Retailers have made the most of a buying frenzy, with smokers looking to stock up before prices surge following the government tax increase.
The government has authorized Japan Tobacco (JT), which dominates the country’s cigarette market, to raise the prices of cigarettes by around ￥100 (US$1.20) per pack of 20.
The price of popular brand Mild Seven will rise from ￥300 to ￥410 per pack, an increase of 37 percent. Seven Stars will be sold at ￥440, up from ￥300.
The government reportedly hopes to eventually raise the prices to around ￥700 a pack, closer to levels in Europe and North America.
The move is aimed at offsetting an increase in the tobacco tax by a record ￥3.5 per cigarette, or ￥70 per pack, a move proposed by former Japanese prime minister Yukio Hatoyama last year to discourage smoking.
Japan has been slower than its counterparts overseas to introduce indoor smoking bans. Tokyo welcomes smoking in bars and restaurants, but has banned it on pavements.
However, while many Japanese have said they plan to quit, the hike is also encouraging cigarette buying instead of dissuading smokers. Convenience store chain Lawson said it had expanded stocks ahead of the higher prices.
JT increased cigarette shipments last month by one month’s worth, or about 12 billion cigarettes, in anticipation of greater demand. Convenience chain FamilyMart reported that cigarette sales had almost doubled from a year before in the first 25 days of last month.
One person was reported to have snapped up 100 cartons of cigarette packs worth ￥300,000 at a tobacco shop in Tokyo’s working-class district of Ota.
The hike has also led to an increase in the number of burglaries to steal cigarettes, reports said.
In the rural city of Mooka, 100km north of Tokyo, a --47-year-old -jobless man was arrested on Sunday for trying to run away with two cartons from a supermarket.
However, the price increase is also helping smokers kick the habit.
Many stopped smoking in mid-2006 when prices were raised by smaller amounts — mostly by ￥20 per pack.
The ratio of smokers to the male population, which peaked at 83.7 percent in 1966, dropped from 41.3 percent to 40.2 in 2007 after the last price hike.
It stood at 38.9 percent for men last year, compared with 11.9 -percent for women.
A recent opinion poll found that 58 percent of respondents said they would give up after yesterday’s rise.
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