PM · 10-Q · 2026Q3 · Full report

Japan Excise Tax Increase

Philip Morris International Inc. · 2026-10-23 · Importance 40 · Surprise 42

Japan adopted a multi-year tobacco excise-tax plan in March 2025. It harmonized heated tobacco product taxes with cigarette taxes in two steps, effective April 1 and October 1, 2026. The first harmonized increase to excise taxes on both categories is scheduled for April 2027. The plan provides predictability on future excise-rate increases for all tobacco product categories through April 2029.

Key facts

• Japan's March 2025 multi-year tax plan harmonized heated-tobacco and cigarette excise tax in two steps, on April 1, 2026 and October 1, 2026; the first harmonized tax increase will occur in April 2027, with excise-rate increases predictable through April 2029. source
• Japan's first harmonized increase to heated-tobacco and cigarette excise tax will occur in April 2027; the plan provides predictability on future excise-rate increases through April 2029. source
• In Japan, Philip Morris International Inc.'s HTU adjusted IMS grew 3.4% in the third quarter of 2026, or 1.3% excluding estimated consumer pantry-loading ahead of the October 1 JPY20-per-pack excise-driven price increase. source
• Philip Morris International Inc. reported that Japan's April 1 excise-driven price increase was JPY40 per pack and that consumers were adjusting following it. source