Imperial Tobacco is fighting plans to introduce plain packaging for cigarettes.
Senior manager at Imperial Tobacco Dr Axel Gietz on Wednesday made a submission to the Health Select Committee arguing against plain packaging.
The Committee is hearing submissions on the Plain Packaging Bill which would have all tobacco products sold without branding.
Dr Gietz told Nine to Noon a KPMG report on Australia's two year experience with plain packaging showed the bill would remove brand competition and force companies to compete on price, making tobacco cheaper.
He defended the veracity of the report, despite it being commissioned by tobacco companies.
Dr Gietz says it is too early to say whether Imperial Tobacco would seek compensation if the act passes into law, but legal action can't be discounted.