Tax hikes and usage restrictions will impact on HnB in Japan

Tax on products in Japan’s growing heated tobacco market will go up on 1st October, as part of a staggered series of rises up to 2022 that will bring the levies on them closer to those on combustible cigarettes.
Meanwhile, a watered-down law restricting smoking in public places passed through the upper house of the Japanese parliament on 18th July.
Conventional cigarettes are steadily losing market share in Japan to heated tobacco, also known as heat-not-burn (HnB), and the government is aiming to increase its tax revenue from the latter. There will be four tax rises of JPY20 ($0.18) on HnB consumables by 2022 and three on combustible cigarettes, bringing the taxable rate on the new products to within 70% to 90% of conventional smokes.