Rising Illegal Cigarette Trade in New York due to Taxes

Feb.06

Strict anti-smoking policies in New York reduce smoking rates, but also fuel rise in illegal cigarette trade, costing billions.

According to a report from Rstreet on February 5th, in recent years, New York City has successfully reduced the smoking rate from 23% in 2000 to 14.2% in 2020 through measures such as increasing cigarette taxes and establishing smoke-free public spaces. However, strict tobacco control policies have also led to the rise of illegal cigarette trade.

The cigarette excise tax in New York is the highest in the United States, with a tax of $5.35 per pack of cigarettes. After adding local taxes, the retail price exceeds $13. This high taxation has caused cigarette prices to increase significantly, leading many smokers in New York to choose to purchase cigarettes in neighboring states such as Pennsylvania and New Jersey where prices are relatively lower. Additionally, organized crime groups exploit this demand by smuggling illegal tobacco products into New York through established smuggling routes and networks, further exacerbating the problem of illegal trade.

Data shows that over 54% of cigarette products in New York, USA, come from smuggling. The annual amount of smuggled cigarettes is close to 2.32 billion packs, leading to the state losing over $1 billion in tax revenue each year. Not only does this weaken the economic impact of anti-smoking policies, but it also poses potential public safety risks.

The Chinese translation is for reference only. Please refer to the original reference text in English.

References:

[1] Over-regulation Creates More Problems Than It Solves: Bans in New York

Also Read:

[1] Juul Labs, Inc. Supports President Trump's Trade Enforcement Measures

[2] New Regulation in Newton City Raises Concerns in Society

[3] US Supreme Court Hears Oral Arguments on RJR Vapor-FDA Dispute

[4] Hawaii Legislation Proposal to Restrict Nicotine Sales Across State

#North America #United States #Traditional tobacco #Legislation

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