The tobacco industry will appeal to the State Government to fight the compulsory plain packaging for cigarettes.

It was announced earlier that the government will bring in new laws on Thursday to legislate compulsory plain packaging for cigarettes and other tobacco products by January 2012.

A representative of Imperial Tobacco Australia said over a radio station the company will "legally" fight its proposed changes for tobaccos and cigarettes. The company said it will also protect its international property rights, as well as keep the value of their commercial business.

"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," the representative disclosed to ABC Radio.

The spokesperson added that the government's strategy to make cigarettes less appealing to the young generation could backfire as it may become a "bane to public health."

"If the tobacco products are available in the same easy-to-copy plain packaging, it makes it much easier for counterfeiters to increase the volume of illicit trade in Australia.

"That illicit product may not have the health warnings on it, it won't be subject to ingredients reporting."

Meanwhile, Quit, an anti-smoking organization, commented that the most effective way for people to discourage from using cigarette is to sell them at a higher price.

Fiona Sharke of Quit said that if a 25 per cent tax increase is enforced on tobaccos and cigarettes, there's a chance that an estimate of 100,000 of Australia's three million smokers will quit smoking.

"There is absolutely no doubt that this measure alone has the potential to save thousands of lives that otherwise would be lost to the devastating harms of tobacco," she said.

Chief executive Lyn Robers of Heart Foundation welcomed the government's plans as smoking results to cardiovascular diseases.

Ian Olver of Cancer Council Australia also agreed with the new law, stating that Australia may be re-established as a world leader in anti-smoking health policy if the law is passed.

On the other hand, Tim Wilson from the Institute of Public Affairs, remarked that the government should not risk implementing the new law as tax payers will suffer and compensate tobacco companies with $3.4 billion a year.