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Cigarette Tax Increase Angers Smokers
Retailers Scale Back Inventory
POSTED: 11:50 am EDT April 1, 2009
UPDATED: 12:43 pm EDT April 1, 2009
INDIANAPOLIS -- A new federal cigarette tax that went into effect on Wednesday wasn't much of a change for smokers who had already become accustomed to paying higher prices in recent weeks.The price for a pack of cigarettes climbed 62 cents, with smokeless tobacco prices going up 30 cents, 6News' Julie Pursley reported.Wholesalers and merchants said customers began going up last month."The tobacco manufacturers raised their prices a couple of weeks ago, and as a wholesale company, we had to pass it along to our customers," said Sue Eagleton, of Buyers Wholesale.Merchants increased prices early partially to keep people from hoarding smokes at a lower price and having masses of inventory after April 1.There should be few price fluctuations in the near term, unless manufacturers increase their prices again.Retailers had to pay a floor tax for everything they had in their stores as of April 1, which explains why many cut back inventory.Smokers are irate about the tax hike. Many content that they are paying unfairly because they are a group that is popular to pick on."I don't think it's fair, honestly," said Steve Hughes. "They're taking out of my pocket."Non-smokers contend that the tax increase will help in the long run by keeping people from smoking.Retailers said they don't expect people to begin rolling their own cigarettes, as some had suggested, because the price for a bag of loose tobacco has more than doubled.Many smokers said the latest tax increase may finally push them to stop lighting up. Tobacco-Free Kids said they think as many as 1 million people will put cigarettes down for good.More Info: Stop Smoking Hot Line -- 800-QUIT-NOW
Campaign for Tobacco-Free Kids
Campaign for Tobacco-Free Kids
Previous Stories:
- March 11, 2009: Cigarette Price Increase Angers Smoking Hoosiers
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