Japan Squeezes Dwindling Ranks of Smokers to Fund Defense Plans

Japan’s tobacco taxes rose on Wednesday, as the government turns to the country’s ever-shrinking pool of smokers to help fill a shortfall in funding for its defense buildup.

Levies on heated tobacco products were increased as part of a move to bring rates in line with cigarettes. Further hikes on both heated tobacco and conventional cigarettes through 2029 are projectedto add up to about ¥212 billion ($1.3 billion) in revenue a year, earmarked for defense.

Faced with growing regional threats, Japan had introduced more ambitious defense spending plans, but equivocated about how to fund them, with successive administrations reluctant ...