Japanese war on smoking chokes BAT tax
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The Japanese Government waging a war tax on smokers, increasing tobacco duty 40pc in a bid to reduce consumption in a country where more than one third of men smoke.?Photo: Alamy
Naresh Sethi, head of Japan tobacco giant it is anticipated that sales volumes will be fall 2011 but that the company would recover reducing price increases.
TAB that holds a share of the Japanese market through the brands including Kent and Lucky Strike 10pc said the number of cigarettes sold in the Asian countries would enter in a forecast 2010 180bn 218bn next year.
The Japanese Government waging a war tax on smokers, increasing the duty of tobacco by 40pc in October in a bid to reduce consumption in a country where more than one third of men smoke.
However, tobacco companies have passed the increase in consumers, with an average pack of 20 cigarettes through more than one-third to 410 yen (￡ 3.08).
"I believe that manufacturers have taken into account in the 17pc the decline of the 22pc industry looking at what price they must define and they will definitely able to recover a portion of the losses of profits coming from the decrease in volume," Mr. Sethi reportedly told Reuters.
Last month, BAT unveiled 3pc fall in sales volumes in the first three quarters of the year following growth in the illicit trade of tobacco, cigarette markets falling in the West, and the devastating floods in Pakistan.
Paul Adams, Chief Executive, said: "impact of recession, the consumer is still with us and show no signs of abating.".
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