Tax hikes on tobacco products and corporate income will go into effect on April 1, the first of several levies that will be used to help fund an increased defense budget.
A second tobacco tax increase is set for October and the personal income tax will be raised in January. The government expects to raise ?1.3 trillion ($8.15 billion) in fiscal 2027 from the three tax hikes, which will go toward funding a defense spending increase of ?43 trillion over a five-year period that began in 2023.?
Taxes will rise on both conventional cigarettes and heated tobacco products. Typically, the tax on heated tobacco products has been much lower than that of conventional cigarettes, but the gap between the two will narrow with the new adjustments.?
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