Warning: cash-strapped governments can be bad for cigarette makers’ health. Japan Tobacco, the world’s third biggest producer by market capitalisation, is learning fast. Since June 2, when the government flagged the possibility of a massive hike in cigarette tax, JT’s share price has fallen by 13 per cent.

It is understandable that Japan, with its huge public debt, should mull tripling taxes on cigarettes. Barclays Capital reckons that the exercise would raise tax revenues by Y8,500bn, or almost four times last year’s take from cigarettes. That is equivalent to raising consumption tax from today’s 5 per cent to 8-9 per cent, but targets far fewer consumers – useful at a time of sluggish domestic demand.