JT gets Japan approval on price hikes as planned

JT gets Japan approval on price hikes as planned

Japan Tobacco Seeks Price Increases for Heated Tobacco Products Amid Tax Reforms

Japan Tobacco Inc. (JT) has submitted an application to Japan's Minister of Finance to adjust retail prices for its heated tobacco products, aligning with the government's upcoming tax reforms set for April 1, 2026. The proposed revisions cover all 37 variants of Plume tobacco sticks and Wiz tobacco capsules, reflecting a broad adjustment across JT's heated tobacco portfolio. The company stated that the changes aim to sustain product quality and brand value while adapting to the evolving tax framework.

The tax reforms will equalize the tax treatment of heated tobacco and traditional cigarettes, eliminating the current lower tax rate for heated products. Japan Tobacco International (JTI), a subsidiary of JT, has acknowledged that this shift will drive price increases. JTI's Chief Financial Officer, Vassilis Vovos, indicated that the retail price of heated tobacco products could rise by approximately 70–90 yen per unit, with an additional 100 yen ($0.65) possible after including sales tax. To mitigate consumer impact, JTI plans incremental price adjustments throughout 2026 rather than a single increase, following a 30-yen hike in January.

While the tax changes pose short-term challenges, JTI reported strong financial performance in 2025, with adjusted operating profit rising 23.5% at constant currency, driven by growth in heated tobacco and vapes. Its Ploom brand, a key focus for innovation, achieved a 14.4% market share in Japan's heated tobacco segment, reflecting a 38% volume increase. Vovos noted that any growth slowdown due to higher prices would likely be temporary.

JT emphasized its commitment to enhancing product quality and customer service amid the transition. The outcome of the price application remains pending government approval, with potential implementation scheduled for April 1.

(https://tobaccoreporter.com/2026/01/28/jt-applies-to-raise-prices-of-plume-and-wiz-products/): Tobaccoreporter, January 28, 2026
(https://www.reuters.com/world/asia-pacific/japans-tax-changes-heated-tobacco-threaten-jti-product-growth-this-year-cfo-says-2026-02-13/): Reuters, February 13, 2026

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