Czech Finance Minister Miroslav Kalousek prefers to raise the tax on cheaper tobacco products rather than on pricier brands, so that Philip Morris would keep its production facility in the country, Mlada Fronta Dnes said citing the minister.

Philip Morris may start reducing its global production facilities including the one in the Czech Republic and raising tax on expensive brands may contribute to its closing, the newspaper added.

To contact the reporter on this story: Lenka Ponikelska in Prague at lponikelska1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net