The government of Japan is getting out of the cigarette business.  The Finance Ministry is selling a third of its stake in Japan Tobacco, a move expected to raise $10 Billion for the country’s northeast coast to rebuild after the tsunami and nuclear disasters.

Divesting allows to the government to get rid of an embarrassing conflict of interest while fulfilling the goal of a 2011 law to sell-off JT shares to raise money for the recovery.

Japan Tobacco (JT) was started in 1898 to give the civilian government of the Emperor Meiji a monopoly on tobacco products.  That monopoly lasted until 1985.  But critics say the government’s interest in JT was a roadblock to critical anti-smoking efforts, which the government considers to be a behavioral issue instead of a national health threat.  

Smoking rates have declined in recent years, but Japan still puffs a lot more than other countries.  Almost a quarter of Japanese still smoke, more than 36 percent of men and more than 12 percent of women.

It’s now illegal to smoke outdoors in some of the wealthier districts in Tokyo, and tougher anti-smoking rules are in effect in Kyoto and Osaka as well.