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swissinfo January 17, 2006 1:05 PM
Leading tobacco companies are set to lower the price of cigarette
brands in Switzerland amid lower sales and tougher competition from
discounters.
Health campaigners are concerned that lower prices will drive up
tobacco consumption and are calling instead for cigarette prices
to be increased.
Philip Morris, one of the three big tobacco names in Switzerland,
said the price of a packet of cigarettes could fall by up to half
a franc ($0.39).
Spokesman Marc Fritsch told Swiss public radio the company was reacting
to tough competition from discounters, including German newcomer
Aldi, which have begun offering no-name cigarettes for up to a quarter
the price of brand names.
Another reason was the higher tax slapped on cigarettes in late
2004, which had added SFr0.50 to the cost of a pack.
"The tax increase has had an impact on consumers, who naturally
want to smoke for less money," Fritsch said.
Risk to youth
Philippe Vallat, the head of the national tobacco prevention programme
within the Federal Health Office, said he was concerned at the development.
He said low prices had until now never been used in Switzerland
as a tool for marketing cigarettes.
"It is internationally well documented that consumption of
cigarettes is directly linked to prices, and especially young people
are very sensitive to price," Vallat told swissinfo.
"We are afraid that the lowering of prices by the tobacco industry
could lead to increased consumption, especially by the youth."
Vallat said the health office expected the government to react to
the move by announcing an increase in cigarette tax.
"What we expect at the health office is that the government
increases the cigarette tax in order to make tobacco products less
affordable for consumers and young people."
The head of the tobacco prevention programme said recent experiences
in France showed that a tax increase did lead to a reduction in
consumption, especially among young people.
"A good tax policy by the government is one of the central
elements of efficient tobacco prevention. We'd like the government
to increase taxes as that's a very effective and simple means of
fighting tobacco consumption."
Vallat said tobacco consumption in Switzerland was generally decreasing
amid moves in the country to clamp down on passive smoking and as
awareness of the health risks of smoking grew.
"In Switzerland opinions about smoking are changing,"
he said.
Minimum price
Swiss parliamentarian Walter Donzé is also concerned that
lower cigarette prices will lead to greater consumption. "The
industry is reacting with lower prices to try to increase demand.
I find this development dangerous," Donzé told Swiss
public radio.
The politician has submitted a proposal to the House of Representatives
calling on the government to set a minimum price for a pack of cigarettes.
Vallat said the health office would also agree to a minimum price,
but that a tax increase should take priority.
"A tax increase comes in first priority for us and then we
would consider the implementation of a minimum price."
Source by : http://www.swissinfo.org/sen/swissinfo.html?siteSect=111&sid=6389728&cKey=113750297300
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