Health and welfare minister Yoko Komiyama on Sept. 9 said that the price of a pack of cigarettes should be raised ¥100 each year to around ¥700 at least and the jurisdiction of tobacco-related administration should be transferred from the Finance Ministry to her ministry.
Finance Minister Jun Azumi reacted strongly by saying that he never thought of raising cigarette prices. He also insisted that the jurisdiction belonged to him.
In October 2010, the tobacco tax was raised by ¥3.5 per cigarette. Thus the price of Mild Seven, a popular cigarette brand of Japan Tobacco Inc., rose from ¥300 to ¥410 per pack. The tobacco tax brings a yearly revenue of more than ¥2 trillion. There is a fear that the price raises may reduce the revenue.
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