February 1, 2018

 

Japan is a major contributor to the WHO, ranking second in the amount of mandatory budget contributions (the United States being first).

Moreover, Japan is the world’s largest contributor to the costs of the Framework Convention on Tobacco Control (FCTC) meetings.

This mirrors a pattern seen in the past, such as during the Gulf War, when Japan was criticized internationally for its stance of "paying money instead of taking action."
The Japanese government remains indifferent to the FCTC, blatantly ignoring its obligations under the treaty.

Such behavior is shameful and unbecoming of a member of the international community.

 

Before delving into why the Japanese government fails to promote tobacco control measures such as preventing secondhand smoke, let’s review the key provisions of the FCTC.

 

Article 6: Increase Tobacco Taxes and Prices to Reduce Demand

In many countries, even the cheapest pack of cigarettes costs 800 to 1,000 yen.

In the UK and Norway, the price exceeds 1,000 yen, and in Australia, it ranges from 1,600 to 2,200 yen.

There is no developed country where cigarettes are cheaper than in Japan.

Raising the price of cigarettes can serve as a motivation for smokers to quit.

Most people start smoking in junior high or high school.

My first experience with smoking was during a school trip in my second year of high school when I was persuaded to try a cigarette by students from Akita Prefecture at a Sapporo inn.

If cigarette prices were raised to 2,000 or 3,000 yen per pack, junior high and high school students would be unable to afford them.

In fiscal year 2013, approximately 200 billion cigarettes were sold.

A simple calculation shows that increasing the tax by just 1 yen per cigarette would generate 200 billion yen in additional tax revenue.

A 10-yen increase would bring in 2 trillion yen.

Of course, as prices rise, sales volumes decline, so the reality is not as straightforward.

However, the World Bank has reported that a 40% increase in cigarette prices reduces smoking by 14–16%, while tobacco tax revenue increases by 20–28%—a principle observed worldwide.

According to one estimate, raising cigarette prices to 1,000 yen per pack could reduce smoking rates and consumption by one-third while generating over 2.5 trillion yen in additional tax revenue.

This makes it clear that a significant tobacco tax hike should precede any increase in consumption tax.

It is commonly assumed that higher tobacco taxes and prices will reduce demand, thereby lowering tobacco company profits and tax revenue.

However, this is not the case.

Because of tobacco’s addictive nature, not everyone stops smoking in proportion to the price hike.

Raising cigarette prices not only increases tax revenue but also reduces smoking rates, leading to a decrease in health-related damages.

This is the most effective method to curb the ever-growing national medical expenses.

One estimate suggests that smoking-related diseases such as cancer and arteriosclerotic conditions cost 3.2 trillion yen in unnecessary medical expenses annually.

By significantly increasing cigarette prices, tax revenue would rise, and healthcare costs would decrease.

It’s a win-win situation!

  

To be continued