New Yorkers Want to Buy Cheap Cigarettes Products

Published on January 6th, 2011 10:45

Sales of taxed tobacco products have dropped significantly by 27% statewide since the highest tobacco tax in the nation secured a footing in July. Compliant tobacco dealers have sold approximately 30 million packages of cigarettes in each of the last four months, some 11 million fewer than before governor Paterson when the state tax on tobacco products was increased to $4.35 per package in order to close a huge budget deficit. Such a decline in smoking would surpass even the wildest expectations of anti-smoking representatives, who calculated that arrival of the 10$ cigarette package would cut the sales by 8 to 9% as the smokers with cash deficit cut back or quit.

smoking cigarette

Apparently sales have simply have drifted to nearby low-tax country that permit New Yorkers to pile up discount price tobacco products at the account of the state treasury. According to The Post, both Pennsylvania and Vermont, which have rather lower cigarette taxes, have faced tobacco sales increase since New York’s prices jacked up. The jack up increased the mean price of a package of Marlboros to $11.60 in New York City if compared to $5.93 in Matamoras.

The Post announced in August that retailers stated that sales were off as much as 45 % in shops which verge with low-tax states as for instance Pennsylvania and Vermont, and also with tax-free Indian reservations in western New York and on Long Island.

Recent research showed that sales are increasing in Indian reservations, where tribes have impeded to Paterson’s attempts to levy taxes on tobacco products sold to non-Native Americans. “We warned that it would happen. And apparently this is happening now. Every increase in duties attracts a great number of smokers to the unlicensed and untaxed side of the street. The whole policy is ill-omened,” stated James Calvin, of the New York Association of Convenience Stores.

In case this trend will continue, the state might drop far short of the $260 million unexpected profit Paterson expected from the 58% tax progression. This raise has lead to only $13.8 million a month, according to state sales information that shows that the plan might be as much as $136 million in loss by March 31.

Bureau of the Budget representative Erik Kriss stated that fiscal analysts estimated a 22% fall in tobacco production sales. “We suppose that we will reach our objectives for the taxation year,” he added. Budget officials have recently lowered by $113 million the sum it hopes to gather by taxing reservation sales of tobacco products.

This plan has come to be a standstill, where tribes debate over the move which offends their sovereignty.

By Joanna Johnson, Staff Writer. Copyright © 2011 TobaccoPub.com. All rights reserved.


Related tags: tobacco products | buy cigarettes | cheap cigarettes | usa | cigarettes tax

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