On Monday companies raised the price of a pack of cigarettes by 400 colones ($0.80), thereby passing on the tax of 20 ¢ per cigarette imposed on them under Control of Tobacco Act.

For representatives of tobacco companies, the new tax will encourage more smuggling of tobacco. "We are concerned that this price increase there will be more cigarette smuggling, as occurred in Panama, where illegal sales rose from 25% to 75%", said Gerardo Lizano, manager of corporate affairs for British American Tobacco, to Nacion.com .

The tax aims to reduce the harmful effects that smoking substances such as nicotine, which encourages the appearance of cancer, have on people’s health.

Source: Nacion.com

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