New York Increases Cigarette Tax, Receiving Mixed Reactions

Regulations by 2FIRSTS.ai
Sep.04.2023
New York Increases Cigarette Tax, Receiving Mixed Reactions
New York state raises cigarette tax to $5.35, the highest in the US, with additional tax imposed on smokers in NYC.

According to a report from the Olean Times Herald on September 3rd, New York State has increased the cigarette tax by $1, making it the highest in the United States at $5.35. Additionally, smokers in New York City will be subject to an additional tax of $1.50.

 

This marks the first increase in state taxes since 2010. While health advocates applaud this measure, believing it will lower smoking rates and cancer-related deaths, anti-tax organizations express concerns about the potential surge in illegal cigarette tax trade in New York.

 

A study conducted by organizations such as the American Lung Association has found that a 10% increase in tobacco prices could potentially result in a 4% decrease in tobacco consumption. This could potentially motivate 44,000 New Yorkers to quit smoking and prevent 14,400 adolescents under the age of 18 from starting to smoke.

 

However, the fiscally conservative McKinsey Public Policy Center estimates that due to the increase in taxes, the amount of cigarette smuggling in New York will increase by 11%.

 

According to an article published by The Time Union, while raising cigarette taxes in New York is seen as a step in the right direction, anti-tobacco activists argue that more work needs to be done, especially in taxing e-cigarette products, which are popular among young people.

 

The American Lung Association advocates for equal taxation on all tobacco products, including e-cigarettes, in New York. As a result, the state of New York has raised its cigarette tax to $5.35, the highest in the country, and implemented an additional New York City cigarette tax.

 

This move has received support from health advocates, who believe it will decrease smoking rates and cancer risks.

 

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