Local tobacco excise tax income in Japan FY 2013-2022

In fiscal year 2022, revenue generated through local excise taxes on tobacco products sold in Japan were estimated to amount to just over one trillion Japanese yen, remaining at a similar level compared to the previous fiscal year. Local excise taxes in Japan encompass prefectural taxes and municipal taxes.

Stacking the tax burden

Apart from local excise taxes, tobacco products sold in Japan are further subjected to consumption taxes, national excise taxes, and tobacco special taxes. Consequently, taxes made up the majority of retail prices of tobacco products distributed in the domestic market, with local excise taxes accounting for the lion’s share of tobacco tax revenue in the country.

Japan: a paradise for smokers?

Japan was considered a paradise for smokers in the past, granted from its lenient regulations that allowed lighting up a cigarette in most public areas. However, following the announcement of Japan hosting the Tokyo Olympics 2020, smoking bans were implemented in stages. Coupled with the wish for a healthier lifestyle and emerging alternatives to traditional cigarettes, the sales volume of rolled cigarettes has been showing a continuous downward trend in recent years.