Gov't considers linking cigarette prices to inflation

By Park Sae-jin Posted : May 7, 2013, 11:24 Updated : January 1, 1970, 09:00
The government is considering linking cigarette price hikes to consumer price increases, officials said Sunday.

The contemplated measure is part of efforts to reduce the country's adult population smoking and secure more revenue, the officials at the Ministry of Strategy and Finance said.

The Ministry of Health and Welfare calls for a hike of average cigarette prices from 2,500 won (US$2.28) per pack to 7,000 won to reduce the nation's smoking rate.

Many people have demanded that cigarette prices be raised sharply.

However, Hyun Oh-seok, deputy prime minister and minister of strategy and finance, reportedly asked for a moderate increase of cigarette prices so that such a price hike would neither accelerate inflation and nor give a burden to the people.

Since a sharp increase of cigarette prices, which has been demanded by some people, could give a "big burden" to either inflation or the people, the govenment should deal with the matter in a prudent manner, Hyun said.

By Ayaka Erin Tobari
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