In fiscal year 2024, revenue generated through local excise taxes on tobacco products sold in Japan were estimated to amount to just over ** 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 constituted 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.
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Japan Tobacco. (May 29, 2026). Revenue from local excise taxes on tobacco products in Japan from fiscal year 2014 to 2024 (in trillion Japanese yen) [Graph]. In ÌÇÐÄÆÆ½â°æ. Retrieved August 02, 2026, from /statistics/1131622/japan-local-tobacco-excise-tax-revenue/
Japan Tobacco. "Revenue from local excise taxes on tobacco products in Japan from fiscal year 2014 to 2024 (in trillion Japanese yen)." Chart. May 29, 2026. ÌÇÐÄÆÆ½â°æ. Accessed August 02, 2026. /statistics/1131622/japan-local-tobacco-excise-tax-revenue/
Japan Tobacco. (2026). Revenue from local excise taxes on tobacco products in Japan from fiscal year 2014 to 2024 (in trillion Japanese yen). ÌÇÐÄÆÆ½â°æ. ÌÇÐÄÆÆ½â°æ Inc.. Accessed: August 02, 2026. /statistics/1131622/japan-local-tobacco-excise-tax-revenue/
Japan Tobacco. "Revenue from Local Excise Taxes on Tobacco Products in Japan from Fiscal Year 2014 to 2024 (in Trillion Japanese Yen)." ÌÇÐÄÆÆ½â°æ, ÌÇÐÄÆÆ½â°æ Inc., 29 May 2026, /statistics/1131622/japan-local-tobacco-excise-tax-revenue/
Japan Tobacco, Revenue from local excise taxes on tobacco products in Japan from fiscal year 2014 to 2024 (in trillion Japanese yen) ÌÇÐÄÆÆ½â°æ, /statistics/1131622/japan-local-tobacco-excise-tax-revenue/ (last visited August 02, 2026)
Revenue from local excise taxes on tobacco products in Japan from fiscal year 2014 to 2024 (in trillion Japanese yen) [Graph], Japan Tobacco, May 29, 2026. [Online]. Available: /statistics/1131622/japan-local-tobacco-excise-tax-revenue/