Brazil plans to raise minimum cigarette price, source says

FILE PHOTO: A model smokes a cigarette during Sao Paulo Fashion Week March 19, 2013. REUTERS/Nacho Doce/File Photo

BRASILIA (Reuters) -Brazil's finance ministry plans to raise the minimum cigarette price to offset losses from tax benefits granted to companies in some sectors and small municipalities, a government source told Reuters on Monday.

The hike is expected to be part of a package to compensate for nearly 26 billion reais ($5.03 billion) in revenue loss from the exemption of payroll taxes approved by Congress in December, the source said.