THE federal government says big tobacco is deliberately targeting vulnerable teenagers by selling cheap cigarettes.
British American Tobacco Australia (BATA) has released a budget brand called Just Smokes, which retails at about $11.50 for a pack of 25.
That's much lower than the average price of $16 and only slightly higher than illegal counterfeit products.
BATA argues it has been forced to go downmarket because the government's decision to increase the tobacco excise by 25 per cent in 2010 has resulted in a massive growth in illegal tobacco and contraband.
But Health Minister Tanya Plibersek isn't buying the argument. ''By dropping their prices, British American Tobacco appears to be directly targeting vulnerable teenagers,'' she said yesterday. ''We know that young people are the most price-sensitive smokers of all.''
BATA spokesman Scott McIntyre says the government is to blame for the price war by increasing the excise.
''Our customers have been down-trading to cheaper products or illegal cigarettes so we've been forced to compete.
''If the government keeps giving us ad-hoc excise increases like they have in the past then all they'll do is make the problem worse.''
Mr McIntyre later admitted on ABC radio that cheaper cigarettes would probably result in more people lighting up.
AAP
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