[SIZE="5"]Philip Morris Seeks Cigarette Price Hikes In Japan[/SIZE]
TOKYO (Nikkei)--Philip Morris Japan KK said Thursday it has asked the Ministry of Finance to approve its plan to increase the prices of 76 cigarette products, in line with a tobacco tax hike taking effect in October.
If approved, the higher prices would kick in Oct. 1.
Philip Morris Japan, the No. 2 player in the nation's tobacco market after Japan Tobacco Inc. (2914), plans to raise prices by 110-120 yen a pack. Its popular Marlboro brand will sell for 440 yen a pack, up from 320 yen, while Lark smokers will have to shell out 410 yen for a pack instead of the 300 yen they have been paying.
The additional tax amounts to 3.5 yen per cigarette, or 70 yen for a standard pack of 20. With sales expected to decline after the tax increase, Philip Morris aims to maintain revenue through aggressive price hikes.