BRUSSELS – Health Ministre Rudy Demotte has declared a new war on tobacco firms in the form of a 25 cent price hike for each pack of cigarettes.

Philip Morris was the first to react to the announcement, saying as expected that it would not pass on the cost increase to consumers but prefers to reduce its profit margin.

Demotte was quoted by Belgian news agency Belga as saying the cigarette companies were, “showing their true faces.”.

“This shows that the industry is not concerned about the health of young people, but on the contrary, it wants to win more and more clients. The price must rise.”
Other cigarette companies have also said they would also keep their prices at 2004 levels to avoid passing the cost of high taxes to consumers.

After the price increase, a package of cigarettes should cost EUR 4.70.

[Copyright Expatica 2004]

Subject : Belgian news