New York Loses $400 Million After Imposing The Nation’s Highest Cigarette Tax.

It holds the dubious honor of having the highest cigarette taxes in country, with the average pack of smokes in New York City costing as much as $10.60.It raised taxes on cigarettes to $4.35 in 2010 from $2.75. In total, cigarette taxes have increased by 190 percent since 2006.

The sharp rise has resulted in a raft of unintended consequences which are dealing a significant blow to the state’s finances, The illegal tobacco trade has a global reach with The Framework Convention Alliance (FCA), a coalition of anti-smoking groups organized by the World Health Organization to promote tobacco control globally, estimating that, “illicit trade in cigarettes represents approximately 10.7 percent of global sales, or 600 billion cigarettes annually,” and reduces government revenues by between $40 billion and $50 billion per year.

 

 

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