SEOUL, Aug 12 Asia Pulse - South Korea's Finance Ministry said Friday that it needs further discussion with other ministries to decide when it will raise cigarette prices.

The bill on a further increase in cigarette taxes was approved at a Cabinet meeting earlier in the day, which fanned speculation that the price hike will be made this year. ADVERTISEMENT

Late last year, the government raised the tax on cigarettes by 500 won (US$0.49) a pack in a bid to reduce smoking.

According to government data, one out of every four people smokes in this country of 48 million people, making the domestic tobacco market a large business area and a lucrative source of tax revenues.

The proposed bill calls for raising the tax on cigarettes by 500 won a pack. Cigarettes currently cost between 2,000 won and 3,000 won a pack in South Korea.

The government had originally intended to raise cigarette prices in July, but put the plan on hold out of concerns about its negative impact on the economy and a fall in tax revenues. (Yonhap)

12 August 2005

Source: Yahoo