It was seen lately that the tobacco companies were against Kevin Rudd's new cigarette packaging plans and threatened to challenge them in court.

It was noticed that the Prime Minister today had announced a 25% tax increase on cigarettes and would be put in action from midnight tonight. From July1, 2012 the tobacco companies would be using plain packaging.

It was told by Mr. Rudd that he wanted the plain packaging because the smokers scared of the rising prices had started stockpiling cigarettes.

“Introducing plain packaging just takes away the ability of a consumer to identify our brand from another brand and that's of value to us”, said Cathie Keogh spokeswoman for Imperial Tobacco Australia to ABC Radio.

Because of the new packaging it was feared by the cigarette makers that this move would spoil their brand name and were ready to take legal action.

It was seen that British American Tobacco Australia told The Australian Online they were against plain packaging and would guard the property that lies in that packaging. They also said that if it was really needed they were ready to take legal action.