The devastating earthquake in Japan, which shook the whole economy, is still revoking the country from overcoming the devastation. It has come to light that soon, the dominating political party of the country would be selling its stakes in Japan Tobacco Inc. to raise funds for repairing damages.

The Government is hopeful that through the deal, it will be able to raise as much as 1.8 trillion Yen, even if it sells just 50.01% of its stakes. Moreover, Japan is planning to increase taxes over the use of tobacco and cigarette.

Market analysts are of the view that through this step, Japan won't be required to seek help of other countries for funds. It has come to light that in 2010, the Japanese Government raised the tobacco tax by 40%. Japanese Health Minister Yoko Komiyama has informed that the Government will strive to raise the tax rates unless and until the prices of cigarette touches 700 Yen.

Through the practice, the Government is aiming to shoot two birds with one stone. Tobacco is said to be the main cause of lung cancer and other type of respiratory disorders. By imposing hike in tobacco tax, the Government is not only discouraging people from using it, but is also raising funds to support the already damaged economy.