Japan today imposed the biggest tax hike on cigarettes in its history with some prices up nearly 40 per cent in a bid to encourage more people to quit smoking. The government has authorised Japan Tobacco which dominates the country's cigarette market to raise the prices of cigarettes by around 100 yen per pack of 20. The move is aimed at offsetting an increase in the tobacco tax by a record 3.5 yen per cigarette as proposed by former Prime Minister Yukio Hatoyama last year to discourage smoking.