Japanese Government Urged to Sell Entire JT Stake

Source from:  Tobacco Reporter 09/08/2011

Japan Tobacco Inc. issued a statement yesterday encouraging the government to sell its stake in the company but expressing opposition to a possible increase in tobacco taxes, according to a Kyodo News story. Although JT has in the past welcomed the idea of privatization, this is believed to be the first time it has done so in writing. JT says the government would be able to secure around ¥1.7 trillion in revenue by selling its entire stake. Last month, the Japanese Finance Ministry proposed selling part of its stake in JT to help fund reconstruction following the March 11 earthquake and tsunami. At a meeting of the Democratic Party of Japan's panel on reconstruction, the ministry proposed reducing its stake from 50.1 per cent to 33.4 per cent in order to raise about ¥600 billion. The government is said to need about ¥13 trillion for rebuilding during the next five years. Earlier this week, Japan's new Health Minister, Yoko Komiyama, called for the excise tax on cigarettes to be raised by ¥100 annually until the price of a 20-piece pack reached ¥700. The last cigarette tax hike, of ¥70 per pack, which took effect on October 1, caused huge disruption to the market, with sales skyrocketing before October 1 and plummeting afterwards. Enditem