Imperial Tobacco has been accused of allowing a trade in cheap cigarettes in Laos through a special deal with the country's government, reports BBC.

A tax agreement between Imperial and state-owned Laos Tobacco means cigarettes can cost as little as GBP 0.25 per pack, researchers said. The University of Bath's Tobacco Control Research Group claimed that this encourages children to start smoking. According to the report, Imperial said it abides by all international tax obligations.
A similar pack of cigarettes can cost around GBP 12.50 in the UK, and there are strict laws which prevent them being promoted to children. Dr Maniphanh Vongphosy of the Asian Tobacco Control Alliance said: "Young people do smoke here – 13 to 15 per cent of young people are smoking. It's not only the low price and the high affordability. Tobacco companies put their products in colourful boxes next to sugar or something the children can access."
Smoking rates in Laos are high, and it is not uncommon to see children with cigarettes.
Tobacco campaigner Phil Chamberline claimed the deal means that Laos has lost more than GBP 140 million in tax revenue from the deal it struck with Imperial, the report said.
In a statement, Imperial said it did not endorse the placing of its products next to confectionary. It also added the tax deal was one of many economic aspects of the agreement, and their investment saved Laos Tobacco from bankruptcy, according to BBC.
Imperial said they paid the Laos government a regular dividend income, and the low price of its cigarettes there must be seen in a context where many live on the equivalent of GBP 1 a day.