Japan Tobacco mulls raising some cigarette prices
TOKYO--Japan Tobacco Inc. (2914.TO) and its rivals are considering hiking some cigarette prices by up to Y20 per pack from April 2014 to absorb the impact of a sales tax increase, local media reported Wednesday.
JT and its bigger rivals Philip Morris International Inc. PM +0.30% and British American Tobacco PLC BTI +0.68% are likely to hike prices of some brands by Y10 or Y20 per pack, while keeping prices intact for other brands, the Yomiuri Shimbun reported in its Wednesday morning edition.
The tobacco companies will adjust their price structures to reflect the sales tax hike on an overall basis, since it would be difficult to raise prices by the exact amount on each individual brand on a single yen basis. Cigarette vending machines in Japan do not accept coins less than Y10 in value.
The sales tax will rise to 8% on April 1 from 5% currently.