JT Applies to Amend Retail Prices of Certain Tobacco Products in Japan PDF:102kb

FOR IMMEDIATE RELEASE

Tokyo, January 27, 2017

1. Six products including Wakaba and Echo

   Following the revision of the tobacco tax law under the FY2015 tax reform, the preferential tax treatment for former third class cigarettes was be abolished as of April, 2016, and the tax rate for the cigarettes will be increased in stages until April 1, 2019. As the tax for the cigarettes will be raised by ¥1 per stick on April 1, 2017 based on the revision, JT has decided to apply to amend the retail prices of the cigarettes. Retail prices that the Company has proposed in this application reflect the amount of the tax rate increase as well as expected impact on demand.

   JT plans to amend retail prices of all six products, the former third class cigarettes, in stages each time the scheduled tax rate hike is conducted. Retail prices of the cigarettes will be considered carefully, taking into account the market situation.

2. Schedule of retail price amendment

The retail price amendment will take effect on April 1, 2017, which is subject to approval by the Minister of Finance.

JT will strive to meet the higher consumer expectations through improving quality and services.

###

Japan Tobacco Inc. is a leading international tobacco company. Its products are sold in over 120 countries and its globally recognized brands include Winston, Camel, Mevius, LD and Natural American Spirit. With diversified operations, JT is also actively present in pharmaceuticals and processed foods. The company's revenue was ¥2.253 trillion (US$18,679 million(*)) in the fiscal year ended December 31, 2015.

*Translated at the rate of ¥120.61 per $1, as of December 31, 2015

Contact: Masahito Shirasu, General Manager Media and Investor Relations Division

Japan Tobacco Inc. Tokyo: +81-3-5572-4292 E-mail: jt.media.relations@jt.com

1 Details of the retail price amendment are shown in the Appendix