Tobacco giant denies price cuts are to encourage smoking

A tobacco giant rejects suggestions it has dropped the price of cigarettes to encourage smoking.

British American Tobacco New Zealand is under fire from the Government for making smoking more affordable.

Smokers are now paying as much as 60 cents less per packet for some brands.

But British American Tobacco says retailers set their own prices and the new list is a guideline only.

Spokeswoman Susan Jones says the small reduction is in direct response to the number of competitor products on the market.

She says the company's actions fall squarely within the Smoke Free Environments Act.

- NEWSTALK ZB