Japan

Date of Finalization/ Publication:
July 2023

Author:Manabu Sakuta, MD
Chairman, Japan Society for Tobacco Control

Acknowledgements:
Global Center for Good Governance in Tobacco Control for technical support

Background and Introduction
This is Japan’s fifth country report1 assessing the implementation of Article 5.3 of the
WHO Framework Convention on Tobacco Control (FCTC).2 This report shows thatJapan continues to lag far behind in practically every aspect in the implementation of
Article 5.3 guidelines. There is strong interference from the tobacco industry to weaken
and/or delay tobacco control policy measures. The government still owns 33 percent ofJapan Tobacco Group (JT) which brings the government in direct conflict situation in
implementing the WHO FCTC.
Currently about 20 million people smoke in Japan. An estimated 200,000 people diefrom tobacco related diseases, and about 15,000 from passive smoking. Despite weak
tobacco control measures, with greater health consciousness, smoking is declining.
Japan’s pro-tobacco law, the Tobacco Business Act, which was meant to protect the
tobacco industry, is also responsible for tobacco control measures. This has resulted in
weak measures for public health, such as advertising and promotions still being allowed,
no ban on CSR activities, no pictorial warning on tobacco packs, and low taxes. The
government (Ministry of Finance) continues to own 33 percent of Japan Tobacco Inc.
The top three tobacco companies operating in Japan are Japan Tobacco Inc., (59.1%),
Philip Morris International (PMI, 37.6%) and British American Tobacco (BAT) who
control both the cigarette and heat-not-burn-tobacco market.
Japan Tobacco Inc. (JT) the largest tobacco company in Japan and the third largest in theworld, stated the decline in smoking is due to “structural factors including the aging anddeclining adult population together with increasingly stringent smoking restrictions.”3 In
Japan, cigarette sales dropped by 7.2%. Early 2023, JT reported that its adjusted
operating profit is forecast at JPY 667.0 billion.4
Previously JT used to treat its domestic and international tobacco business (Japan
Tobacco International, JTI) separately, where it was obtaining bigger share of profits
from the international business. As of 2022 it is reporting an integrated tobacco
business. In 2022, JT reorganised its tobacco business clusters from five to three: Asia,(Japan, Taiwan and the Philippines as key markets); Western Europe, (Italy, Spain and the
U.K. as key markets); and EMA, (key markets Romania, Russia and Turkey).
JT’s key brands, (Winston, Camel, Mevius and LD) grew in volume and are selling morethan 360 billion sticks globally and almost 70% of JT’s total volume in 2022.5 Despite
now claiming smoking is harmful, JT is not giving up cigarettes and introduced a new
brand variant of ‘Camel Craft’ cigarettes in October 2022 sold in convenient stores
1 Tobacco Industry Interference Index: Asian report on implementation of WHO Framework Convention on Tobacco

Control Article 5.3. Southeast Asia Tobacco Control Alliance.
http://seatca.org/dmdocuments/SEATCA%20TI%20Interference%20Index%202018.pdf
2 WHO FCTC. Guidelines for implementation of Article 5.3; 2008
http://www.who.int/fctc/treaty_instruments/Guidelines_Article_5_3_English.pdf
3 Japan Tobacco Inc. JT Applies to Amend Retail Prices of Tobacco Products in Japan in Response to a Planned Excise Tax
Increase. Press Release. 30 Jul 2021. Available at: https://www.jt.com/media/news/2021/pdf/20210730_14.pdf
4 Japan Tobacco Inc. 2022 Earning report. 14 Feb 2023. Available at:https://www.jt.com/investors/results/forecast/pdf/2022/Full_Year/20230214_10.pdf
5 Japan Tobacco. 2022 Annual report. https://www.jt.com/investors/results/integrated_report/pdf/2022/integrated2022_E_all.pdf

nationwide. JT reports that within 6 months it became the No. 2 cigarette brand inJapan. It introduced three varieties, 14 mg of tar for “a solid smoke”, 10 mg for a“moderate smoke”, and 3 mg for a “light smoke”. There are now a total of 14 Camelbrand variants.

Source: https://en.otokomaeken.com/news/248083

Simultaneously, JT along with PMI and BAT are increasing sales and promotions ofheated tobacco products in Japan. JT launched Ploom X in 2022. JT also operates a
Ploom Club as “part of our e-commerce platform, offering a personalized experiencebased on each adult consumer’s preferences.”

Source: Japan Tobacco Annual report 2022

In 2014, at the sixth session of the COP, Japan joined other WHO FCTC Parties andapproved the decision to raise awareness and adopt measures to implement Article 5.3
and its implementing guidelines among all parts of government including diplomatic
missions. 6 However the Japanese Embassy in several countries has been found to be
used by JTI to promote its business.
This report on Japan’s implementation of Article 5.3 is based on a questionnairedeveloped by the Southeast Asia Tobacco Control Alliance. There are 20 questions
based on the Article 5.3 guidelines. Information used in this report is obtained from thepublic domain only. A scoring system is applied to make the assessment. The score
ranges from 0 - 5, where 5 indicates highest level of industry interference, and 1 is low
or no interference. Hence the lower the score, the better for the country. The report
includes information on incidents from April 2021 to March 2023, but also includes
prior incidents that are still relevant.

6

WHO FCTC. FCTC/COP/6/14 18 Oct 2014. https://apps.who.int/gb/fctc/PDF/cop6/FCTC_COP6(14)-en.pdf

Summary Findings
1

INDUSTRY PARTICIPATION IN POLICY DEVELOPMENT
Tobacco control policies in Japan lag in comparison to those of other countries. For
example, there are no pictorial health warnings on tobacco packets in Japan (whilst
134 other countries have already implemented such warnings), smoking sections arestill permitted in restaurants (28% of the world has implemented total smoking bansin restaurants), and tobacco tax rates, which is the most effective measure to drive
down tobacco product use, remains less than the rate recommended by the WHO
FCTC. Tobacco control experts believe that this lack of comprehensive tobacco
control regulations in Japan are due in large part to the state’s part ownership of JT.
In addition to these regulatory weakness in Japan, JT and consequently the Japanese
government, is being criticized for its continued sales in Russia. Unlike othercompanies that have withdrawn their business from the country following its
invasion of Ukraine, JTI still operates in Russia selling its cigarettes and providing thecountry with approximately US$2 billion every year in tax.

2

INDUSTRY CSR ACTIVITIESIn 2021, JT spent US$50 million in CSR activities supporting over 400 communities
in Japan as well as in other countries. Some of the activities are conducted throughJT Foundation. In 2022, JT claimed to have spent US$51 million in 522 communitiesin 65 countries.
JT sponsors many sports activities and tournaments. The best known among theseis Japan’s Volleyball team. ‘JT Thunders Volley Ball Classroom’ sponsored events
conducted in elementary schools which involves endorsement by the Education
authorities. The events are held in public sports venues in cities.

3

BENEFITS TO THE INDUSTRY
Japan’s largest political party, Liberal Democratic Party (LDP), in the parliament is
the strongest group that backs JT.
The Tobacco Business Act enables the government to promote the tobacco
industry and give it benefits to operate. The government’s 33% ownership of JT
gives incentives to the government to protect JT’s success and increased profits.
JT and other transnational tobacco companies such as Philip Morris International(PMI) are aggressively promoting heated tobacco products in the media as “newtobacco products with reduced harm.” This is highly misleading to the public asthese products are not harmless, nor free from harm. Heat-not-burn products aretaxed significantly lower than conventional cigarettes. For example, while tax for
cigarette brand Mevius is 63.1%, iQOS of PMI is 50%, GLO of BAT 38% and Ploom
TECH of JT is 50% as from 2020.

4

UNNECESSARY INTERACTION
In May 2021, Philip Morris Japan was set to sponsor the annual Nikkei ‘Future of
Asia Conference’ hosted by Japan Foundation which was scheduled to bring
together political, economic and academic leaders from the Asia-Pacific region to
discuss economic recovery post COVID-19 pandemic. Speakers included the Prime
Ministers of Japan, and heads of state of other countries. Following protest fromcivil society groups that this is Article 5.3 violation, and as world leaders started
withdrawing from the conference, Philip Morris announced withdrawal of its
sponsorship of the conference.
The Japanese Embassies overseas continue to endorse and promote JT. For
example, the Japanese Embassy in Cambodia attended the Inauguration Ceremonyof JTI Cambodia’s new headquarters in 2022.

5

TRANSPARENCY
There is no register for private tobacco companies operating in Japan such as PMI,
or its lawyers and consultants acting on its behalf.

6

CONFLICT OF INTEREST
The Ministry of Finance has jurisdiction over the Tobacco Business Act which hasprovisions on tobacco control such as advertising restrictions and health warnings
on tobacco packs. According to the Ministry of Finance, tobacco tax revenue is an
important source of revenue for the government and they would like to maintain it.

7

PREVENTIVE MEASURESThe government has not adopted or implemented a code of conduct for public
officials to guide them when interacting with the tobacco industry.
The government does not have a program to consistently raise awareness within its
departments and its overseas diplomatic missions on Article 5.3.

RECOMMENDATIONS
1

The government must end all activities that promote the TI and take responsibility toprotect the health and welfare of the people from tobacco. The government must end
ties with the tobacco industry to be free to conduct public health activities.
2 The government must end collaboration with JT’s CSR activities and sponsored events;
3 The government must end benefits given to JT to promote the tobacco business such as
the subsidy for smoking rooms, which violates FCTC Article 8 which requires all public
and work places to be 100% smoke-free.
4 The Ministry of Finance must make transparent all interactions with the tobacco
industry. The government must have a procedure for dealing with the tobacco industry.
5 The government must end the practice of “amakudari” as it negatively affects tobacco
control policy and public health.
6 To promote tobacco control policies, it is necessary for the government to divest its
shares from JT and make it fully a private company.

JapanTobacco Industry Interference Index 2023
Results and Findings
0
INDICATOR 1: Level of Industry Participation in Policy-Development
1. The government7 accepts, supports or endorses any offer forassistance by or in collaboration with the tobacco industry or any
entity or person working to further its interests.8 in setting or
implementing public health policies in relation to tobacco control9(Rec 3.4)

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4

The Health Ministry estimated about 15,000 people die annually in Japan from diseases
related to passive smoking. Indoor public places are not 100% smoke-free as required
under WHO FCTC Article 8. JT has long promoted the concept of harmony and coexistence between smokers and non-smokers.
The 2020 Smoke-free Olympic received wide public support from everyone except the
tobacco industry, who aggressively resisted it. The new national law introduced in 2018prohibited indoor smoking at schools, hospitals and government offices. However, it wasa weakened law due to tobacco industry interference. Smoking is still allowed at existingsmall eateries, including those with less than 1,076 square feet of customer space,including more than half of Japanese establishments. Larger and new eateries must limit
smoking to designated rooms.
However, this form of restriction using square meter is quite inappropriate, as few people
truly comprehend whether smoking is allowed or not allowed. After the full enforcementof the law, almost no bars are smokefree, as well as some restaurants.
JT has established "smoking spaces" so that smokers and non-smokers both can besatisfied. Currently, JT has implemented this effort at 943 locations in collaboration with
212 municipalities nationwide.
2. The government accepts, supports or endorses policies or legislation
drafted by or in collaboration with the tobacco industry. (Rec 3.4)

5

The Tobacco Business Act, which protects the tobacco industry, also covers regulation(or the non-regulation) of tobacco advertising. There is no ban on tobacco advertising andpromotions, and self-regulation is based on JT’s global marketing principles. JT claims that,“the Tobacco Business Act, related acts and statutes and voluntary standards set forth theregulations for the sale and promotion activities of tobacco products in Japan that include
the indication of warning labels on tobacco product advertisements and packages that

7 The term “government” refers to any public official whether or not acting within the scope of authority as long as

cloaked with such authority or holding out to another as having such authority
8 The term, “tobacco industry’ includes those representing its interests or working to further its interests, including theState-owned tobacco industry.
9 “Offer of assistance” may include draft legislation, technical input, recommendations, oversees study tour

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urge caution over the relationship between the consumption of tobacco products andhealth.”10
The Tobacco Business Act requires JT to annually enter into purchase contracts withtobacco growers about the aggregate cultivation area for specific varieties of leaf tobaccoand the prices for leaf tobacco by variety and grade. Leaf prices are decided byrecommendation from Japan Tobacco Inc. The Leaf Tobacco Deliberative Council is acouncil which confers on important matters concerning the cultivation and purchase ofdomestically grown leaf tobacco. The council consists of about 11 members, appointed by
JT with the approval of the Minister of Finance from among representatives of domestic
leaf tobacco growers and academic appointees. Mr. Yoshitsugu Minagawa was formerly
the Director General of Forestry Agency.11
3. The government allows/invites the tobacco industry to sit ingovernment interagency/ multi-sectoral committee/ advisory groupbody that sets public health policy. (Rec 4.8) 1 Never 5 Yes

5Since the government part owns JT and has a Tobacco and Salt Industries Bureau in the
Ministry of Finance, JT’s interests are taken into account in public health policy
development.
The Finance Ministry, which decides on tax increase, also has to consider the interest of
the tobacco business for which it has a fiduciary responsibility to protect its profits. The
Finance Minister is also the Deputy Prime Minister for Japan.
4. The government nominates or allows representatives from thetobacco industry (including State-owned) in the delegation to the
COP or other subsidiary bodies or accepts their sponsorship fordelegates. (i.e. COP 4 & 5, INB 4 5, WG)12 (Rec 4.9 & 8.3)
For non-COP year, follow the previous score of COP year. For nonParties, apply a score of ‘0'2

Unlike COP8 meeting in 2018, where the government delegation included 4 officials (Mr.
Takashi Kosakada, director, Mr. M. Chida, Deputy Director, Mr. T. Mio Officer, Mr. M.
Abe Unit Chief of Coordination) from the Tobacco and Salt Industries Office, Financial
Bureau, Ministry of Finance, Japan,13 at COP9 in 2021, there were no representatives
from the tobacco industry in the government delegation.14 However, there were 5
officials representing the Ministry of Foreign Affairs, four from the Ministry of Finance,and only two from the Ministry of Health, Labor and Welfare. It is assumed the Ministryof Finance will represent the interest of the tobacco industry.
INDICATOR 2: Industry CSR activities
10 Japan Tobacco Inc. Annual Report 2016, Pg 64

https://www.jt.com/investors/results/annual_report/pdf/annual.fy2016_E_partition03.pdf
A1) Revised health promotion act & Tokyo Metropolitan Government Smoking Prevention Ordinancehttp://www.jstc.or.jp/uploads/uploads/files/essay/Passive%20smoking%20Regulation%20.pdf
11 2011 Public Relations Office. Government of Japan. International Year of Forests. 2011. https://www.govonline.go.jp/eng/publicity/book/hlj/html/201110/201110_09.html
12 Please annex a list since 2009 so that the respondent can quantify the frequency, http://www.who.int/fctc/cop/en/
13 FCTC/COP/8 List of Participants. 5 Oct 2018 https://www.who.int/fctc/cop/sessions/cop8/LOP_Final.pdf?ua=1
14 FCTC/COP/9 List of participants. 8-13 Nov 2021 https://fctc.who.int/publications/m/item/cop-9-div-1-list-of-participants

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5. A. Government agencies or their officials endorse, support, form
partnerships with or participates in activities of the tobacco industry
described as “socially responsible” or “sustainable”. For example,
environmental programs. (Rec 6.2)
B. The government (its agencies and officials) receives CSR
contributions15 (monetary or otherwise, including CSR contributions)from the tobacco industry or those working to further its interests
during the pandemic. (Rec 6.4)
NOTE: exclude enforcement activities as this is covered in another question5

In 2021 JT spent US$50 million in CSR activities supporting over 400 communities inJapan as well as in other countries. Some of the activities are conducted through JT
Foundation.16 In 2022, JT claimed to have spent US$51 million in 522 communities in 65
countries.17
A. Government endorsement of JT sponsored sports
JT sponsors many sports activities and tournaments. The best known among these is theVolleyball team. ‘JT Thunders Volley Ball Classroom’ sponsored events involve
elementary schools which involves endorsement by the Education authorities, and theevents are held in public sports avenue in cities. JT owns volley ball teams JT Marvelous(women) and JT Thunders (male) that play league level and every year they hold Volleyball World Cup in Japan. These events are heavily promoted online which remain
unregulated.18 19

B. JT sponsored Tobacco and salt museum is endorsed by the Japanese
Government20

15 political, social financial, educations, community, technical expertise or training to counter smuggling or any other formsof contributions
16 Japan Tobacco Inc. Improving our social impact. 2021. Available at:https://www.jt.com/sustainability/community_investment/index.html
17 Japan Tobacco. 2022 Annual report
18 JT Thunders (Pro Volley Ball) http://www.jti.co.jp/knowledge/thunders/index.html
19 JT Marvelous (Pro Volley Ball) http://www.jti.co.jp/knowledge/marvelous/index.html
20 http://www.jti.co.jp/Culture/museum/index.html

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Many school children visit the tobacco museum

C. Local government participation in sponsored smoking space on streets
In cooperation with municipalities around the country, JT has established "smoking
spaces" so that smokers and non-smokers both can be satisfied. Currently, JT has
implemented this effort at 943 locations in collaboration with 212 municipalities
nationwide.21
INDICATOR 3: Benefits to the Tobacco Industry
6. The government accommodates requests from the tobacco industry
for a longer time frame for implementation or postponement of
tobacco control law. (e.g. 180 days is common for PHW, Tax
increase can be implemented within 1 month) (Rec 7.1)

4

Weak tobacco control measures have benefited JT and transnational tobacco companies
operating in Japan. Japan has not banned tobacco advertising, promotions andsponsorship, a requirement under the WHO FCTC, instead applies self-regulation.
No pictorial health warnings on cigarette packs although JTI exports its brands with PHW
to many countries that require this.
There is no penalty for violation of smoking in no-smoking areas. JT continues to conduct
its ‘manners campaign’.22
7. The government gives privileges, incentives, tax exemptions or
benefits to the tobacco industry (Rec 7.3)

5The existence of the Tobacco Business Act (TBA) reflects how the government protects
the tobacco industry and gives it benefits to protect its business. The government’s 33%
ownership of JT gives incentives to the government to protect JT’s success and increased
profits.
The government sets the price of tobacco leaf through the Leaf Tobacco Deliberative
Council which determined the domestic tobacco cultivation area for 2022 at 3,889
hectares, a decrease of 34.0% compared to 2021 cultivation area. The price of the leaf
21 http://www.jti.co.jp/sstyle/manners/bunen/jirei/collabo/jireishu/02/index.html
22 https://www.jt.com/about/division/tobacco/index.html

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tobacco purchase will remain same as in 2021 at an average of ¥1,924.15 (US$13.80) per
kilogram for all leaf types.23
Under the TBA, JTI is obligated to purchase a grower’s entire tobacco crop excluding any
portion not suitable for manufacturing tobacco products and sold by retailers at prices
approved by the Minister of Finance.
International travellers can bring in duty free 200 cigarettes or 70 cigars or 10 individual
packs of heat not burn.
The tobacco industry routinely opposes tobacco control measures citing the industry
provides employment and that these jobs will be affected. However, to protect company
profits, it retired its own employees who are still in productive age to cut operationalcost. This action was approved by the Ministry of Finance. JT made voluntary retirement
offers to employees aged 46 or above, field partners (part-timers who support the sales
activities). It potentially affected 2,869 workers: JT employees - 1,169; Field partners 1,584 and senior employees – 115.24 JT reported this measure accounted for JPY 34.4
billion (US$246.8 million) of expenses for the fiscal year ending December 31, 2021
Tax for heat-not-burn cigarettes are kept lower than conventional cigarettes. For
example, while tax for cigarette brand Mevius is 63.1%, IQOS of PMI 50%, GLO of BAT
38% and Ploom TECH of JT is 50% as of 2020.
Passive smoking is still allowed in some restaurants and most of the bars. Owners areallowing smoking from the fear of losing customers.
INDICATOR 4: Forms of Unnecessary Interaction
8. Top level government officials (such as President/ Prime Minister or
Minister25) meet with/ foster relations with the tobacco companies
such as attending social functions and other events sponsored ororganized by the tobacco companies or those furthering its interests.
(Rec 2.1)

4

In May 2021, Philip Morris Japan was set to sponsor the annual Nikkei ‘Future of Asia
Conference’ hosted by Japan Foundation26 which was scheduled to bring together
political, economic and academic leaders from the Asia-Pacific region to discuss economic
recovery post COVID-19 pandemic. Speakers included the Prime Ministers of Japan,
Cambodia, Malaysia, Nepal, Pakistan, Vietnam, and Thailand. Civil society groups launched
an international opposition against PMI’s sponsorship27 citing Article 5.3 violation.
Following the protest and as world leaders started withdrawing from the conference,
Philip Morris announced it was withdrawing its sponsorship of the conference.28 JapanFoundation has previously received funding from JTI.
23 Japan Tobacco Inc. Leaf Tobacco Deliberative Council Releases Its Report in Response to 2022 Tobacco Cultivation

Consultation. Press Release. 11 Nov 2021. Available at: https://www.jt.com/media/news/2021/pdf/20211111_E1.pdf
24 Japan tobacco Inc. Results of the Voluntary Retirement Program towards Strengthening JT’s Tobacco Business Operating
Model. Press release. 14 Feb 2022 Available at: https://www.jt.com/media/news/2022/pdf/20220214_16.pdf
25 Includes immediate members of the families of the high-level officials
26 Japan Foundation. Future of Asia Conference. Available at: https://www.jpf.go.jp/e/project/intel/exchange/future_ofasia/
27 Expose Tobacco. https://exposetobacco.org/news/exclude-philip-morris/
28 Expose Tobacco. https://exposetobacco.org/news/subvert-future-of-asia/

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Although JT’s products cause diseases and result in death of its users, In 2023, theMinistry of Economy, Trade and Industry (METI) continued to recognize JT as a CertifiedHealth and Productivity Management Outstanding Organization (“White 500”) for its“health-conscious management”.29
9. The government accepts assistance/ offers of assistance from thetobacco industry on enforcement such as conducting raids on
tobacco smuggling or enforcing smoke free policies or no sales tominors. (including monetary contribution for these activities) (Rec4.3)

3

The Ministry of Health, Labour and Welfare and the Tokyo Metropolitan government offer
a subsidy scheme known as “Passive Smoking Prevention Measure Subsidy System”. Thissubsidy is given to hotels, restaurants and local business to install smoking rooms.30 This
scheme is promoted on Tokyo Metropolitan Government website31 and JT’s website.
Establishment of smoking room in the SME business: the subsidy rate/ grant amount is 1/2of the cost (maximum 1 million yen); however, in the case of a restaurant where theestablishment of a smoking room is taken, 2/3. Equipment cost, equipment cost, equipment
cost, machinery equipment cost etc. for installation of smoking room etc.
10. The government accepts, supports, endorses, or enters into
partnerships or non-binding agreements with the tobacco industry or
any entity working to further its interests. (Rec 3.1)
NOTE: This must not involve CSR, enforcement activity, or tobacco control
policy development since these are already covered in the previous
questions.

4

The Japanese Embassies overseas continue to endorse and promote JT. For example, in
2022, the Japanese Embassy in Cambodia attended the Inauguration Ceremony of JTI
Cambodia’s new headquarters.32

29 JT.com White 500 March 2023 https://www.jt.com/sustainability/external_recognition/index.html
30 Japan Tobacco. Subsidy system; https://www.jti.co.jp/tobacco/bunen/subsidy/index.html
31 Tokyo Metropolitan government http://www.sangyo-rodo.metro.tokyo.jp/tourism/kakusyu/syukuhaku/

32 The Phnom Penh Post, JTI Cambodia Inaugurates Its New World Class Headquarters, publication date 28 September

2022: https://www.phnompenhpost.com/business/jti-cambodia-inaugurates-its-new-world-class-headquarters

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Source: Phnom Penh Post. Ambassador Mikami Masahiro with JTI’s executive and senior
government officials.

By virtue of the government owning 33% of JT, it also owns the Tobacco and Salt
Museum which is a promotional outfit for JT. The Museum was renovated in 2015 andholds regular exhibitions and is open to children.33
INDICATOR 5: Transparency
11. The government does not publicly disclose meetings/ interactions
with the tobacco industry in cases where such interactions arestrictly necessary for regulation. (Rec 2.2)

4

The Finance Ministry gets annual dividend of more than ¥70 billion revenue from Japan
Tobacco shares. That revenue is kept in a special account for fiscal investment and loans,and spent on industrial investment projects that are too risky for the private sector toundertake.34
12. The government requires rules for the disclosure or registration of
tobacco industry entities, affiliated organizations, and individuals
acting on their behalf including lobbyists (Rec 5.3)

5While government officials who work for the Tobacco and Salt Industries Office are easily
identified, however there is no register for private tobacco companies operating in Japansuch as PMI, or its lawyers and consultants acting on its behalf.
INDICATOR 6: Conflict of Interest
13. The government does not prohibit contributions from the tobacco
industry or any entity working to further its interests to politicalparties, candidates, or campaigns or to require full disclosure of suchcontributions. (Rec 4.11) 1 Never 5 Yes

There is no prohibition on contributions from the tobacco industry.
While the Minister of Finance has disclosed his ownership of shares in JT, however thisstill presents a conflict of interest to tobacco control. The Ministry of Finance has
33 Tobacco & Salt Museum. https://www.jti.co.jp/Culture/museum_e/index.html
34 The poverty of politics and tobacco poverty, Commentary, The Japan Times, 23 April 2017,

http://www.japantimes.co.jp/opinion/2017/04/23/commentary/japan-commentary/poverty-politics-tobaccopolicy/#.WVSLdFFLfDA

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jurisdiction over the Tobacco Business Act which has provisions on tobacco control suchas advertising restrictions and health warnings on tobacco packaging. According to the
Ministry of Finance, tobacco tax revenue is an important source of revenue for thegovernment and they would like to maintain it.35
14. Retired senior government officials form part of the tobacco industry(former Prime Minister, Minister, Attorney General) (Rec 4.4)

5High level officials, upon retirement from government service, move to top leadership
positions in JT.36
Shigeaki Okamoto, Deputy Chairperson of the Board: In 2017 he was the Deputy Vice
Minister, Ministry of Finance, and Director-General of the Budget Bureau of the Ministry.
Toru Mimura, Standing Audit & Supervisory Board Member (Independent Outside Audit& Supervisory Board Member): formerly Vice-Minister of Defense for International
Affairs, the Ministry of Finance till 2015.
Masato Kitera, Director (Independent External Director) was with the Ministry of Foreign
Affairs, Deputy Vice-Minister. Ambassador Extraordinary and Plenipotentiary of Japan to
the French Republic, Principality of Andorra and Principality of Monaco (Retired from theposition in December 2019).37
15. Current government officials and relatives hold positions in the
tobacco business including consultancy positions. (Rec 4.5, 4.8, 4.10)

5The Finance Minister is listed as a principle shareholder of Japan Tobacco, holding
666,926,200 shares (37.6%).38 39
Japan Tobacco Inc. Act ensures that the Minister of Finance has decision making powerover Japan Tobacco, including appointment/dismissal of directors, executive officers andAudit & Supervisory Board.
Officials working in the Tobacco and Salt Industries Office under the Financial Bureau of
the Ministry of Finance, represent the industry.
INDICATOR 7: Preventive Measures
16. The government has put in place a procedure for disclosing therecords of the interaction (such as agenda, attendees, minutes andoutcome) with the tobacco industry and its representatives. (Rec 5.1)

35 Jake Sturmer, Yumi Asada. Why Japan smoking laws are stuck in the last century. ABC News. 18 March 2018.

https://www.abc.net.au/news/2018-03-18/why-japan-smoking-laws-are-stuck-in-the-last-century/9559222
36 Japan Tobacco Inc. Annual Report 2016, Pages 50-55,
https://www.jt.com/investors/results/annual_report/pdf/annual.fy2016_E_partition03.pdf
37 Japan Tobacco Inc. Annual Report 2021.
38 Japan Tobacco Inc. Annual report 2019https://www.jt.com/investors/results/integrated_report/pdf/2019/integrated2019_E_all.pdf Page 163
39 Kuchikomi. Smoking bureaucrats find themselves on the outside looking in. Japan Today. 30 July 2019https://japantoday.com/category/features/kuchikomi/smoking-bureaucrats-find-themselves-on-the-outside-looking-in

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There is no procedure for disclosing records of interactions with the tobacco industry
and its representatives.
17. The government has formulated, adopted or implemented a code of
conduct for public officials, prescribing the standards with which theyshould comply in their dealings with the tobacco industry. (Rec 4.2);
1 for whole of government code; 2 for Yes but partial if only MOH

5

The government has not adopted or implemented a code of conduct for public officials to
guide them when interacting with the tobacco industry.
18. The government requires the tobacco industry to periodically submit
information on tobacco production, manufacture, market share,marketing expenditures, revenues and any other activity, including
lobbying, philanthropy, political contributions and all other activities.
(5.2)

3

JT, being part owned (33%) by the government, submits records on production,
manufacture, market share, revenues. However, no record is available on marketing
expenditure, lobbying and political contributions.
According to news reports Japan Tobacco spends ¥20 billion a year on advertising, almost
all of which promotes “manners.” The real reason, according to Sentaku (magazine), thatJapan Tobacco buys space and airtime is to quash anti-smoking reporting by making media
dependent on JT-related ad revenue.40
19. The government has a program / system/ plan to consistently41 raiseawareness within its departments on policies relating to FCTC
Article 5.3 Guidelines. (Rec 1.1, 1.2)

5

The government does not have a program to consistently raise awareness within its
departments on Article 5.3.
20. The government has put in place a policy to disallow the acceptanceof all forms of contributions/ gifts from the tobacco industry(monetary or otherwise) including offers of assistance, policy drafts,
or study visit invitations given or offered to the government, its
agencies, officials and their relatives. (3.4)

5

The government has not put in place a policy to disallow the acceptance of contributions/gifts from the tobacco industry.
TOTAL SCORE

88

40 Media sidesteps calling Japan Tobacco out on advertising conflicts, Philip Brasor, The Japan Times, 14Janhttp://www.japantimes.co.jp/news/2017/01/14/national/media-national/media-sidesteps-calling-japan-tobacco-advertisingconflicts/#.WVSPzFFLfDA
41 For purposes of this question, “consistently” means: a. Each time the FCTC is discussed, 5.3 is explained. AND b.
Whenever the opportunity arises such when the tobacco industry intervention is discovered or reported.

Annex A: Sources of Information

1
2
3

1
2
3
4
5

TOP
TOBACCOCOMPANIES
Japan Tobacco(JT)
Phillip Moris (PM)British American
Tobacco (BAT)

MARKET
SHARE
62％

Mevius32％

Marlboro

13％

Kent

TOP MEDIA/
NEWSPAPERS
Asahi Shinbun
Mainichi Shinbun
Yomiuri Shinbun
NHK
TBS

MAIN TOBACCO
INDUSTRY
ALLIES/ FRONTGROUPS
1 Smoking Research

Foundation
Japan Tobacco Growers
Association
3 Japan Tobacco Sellers
Association
2

BRANDS

SOURCE
http://nomad-salaryman.com/tobaccoindustry2019
http://nomad-salaryman.com/tobaccoindustry2019
http://nomad-salaryman.com/tobaccoindustry2019

URL
https://www.asahi.com
https://mainichi.jp
https://www.yomiuri.co.jp
https://www3.nhk.or.jp/news/
https://www.tbs.co.jp

TYPE(FRONT GROUP, LOBBYGROUP, INDIVIDUAL)

SOURCEhttps://www.srf.or.jp
http://www.jtga.or.jp
https://zenkyou.xsrv.jp