Government will raise tobacco prices to combat smoking

Armenia's Government confirmed a bill regulating the minimum fixed price for cigarettes. Other bills referred to such products as petrol and diesel fuel.

In a session held today Armenia's Prime Minister Tigran Sargsyan mentioned that this issue had been discussed for a long time. He also said that these new drafts are expected to set more fair conditions for taxation.

"The point is that tobacco is, for example, very cheap in Armenia and available to all. Widespread are among us diseases caused by tobacco. Therefore, the prices should gradually be raised, which will be effective to combat smoking. Secondly, it is necessary to create an equally competitive field among importers and producers, and thirdly, the draft envisages a smooth passage to new rules of the game, as this point of the law will come into force by 2014," explained Mr Sargsyan.

Armenia's Minister of Healthcare Harutyun Kushkyan also present in the Government session, in turn, offered to levy 50-100 more drams in taxes on each box of cigarette, and use that money for the treatment of those diseases caused by smoking.

PM Sargsyan said that was an acceptable option to consider.