Cigarette prices soar today

New Yorkers started paying the highest cigarette taxes in the nation today with the latest $1.25 spike per pack that officials expect to bring in $265 million a year.

 

Convenience stores in New York and the smokers who will be pay the price are angry about the change, but health officials hail the tax increase as a success. Officials said cigarette taxes will raise a total of $1.3 billion for the state budget in fiscal year 2008-2009, including the new tax.

 

“Isn’t that something — to say that I’m excited about a tax increase? But I am,” said Dr. Richard Daines, the New York health commissioner. “This is a public health victory. We know one of the really effective tools to get people off of their nicotine addiction is to the raise the price.”

Smokers will be paying $2.75 per pack in state taxes. The average price of a pack of cigarettes is currently $5.82 statewide, and about $8 a pack in New York City, Daines said.

 

An estimated 140,000 New Yorkers will stop smoking with this tax increase, Daines said. That number is based on prior tax increases and cigarette consumption.

 

Source: Associated Press