Tobacco News from CigarettesOn.Net

New cigarette tax sparking changes

It's been more than 3 months since the federal government raised tobacco taxes to help fund increases in the State Children's Insurance Health Program.

The increase included an additional 62 cents per pack federal tax on cigarettes which has many smokers switching to cheaper brands while some retailers closing their doors for good.

On April 1, the tax increases when into effect and is estimated to generate about $33 billion over the next 4 1/2 years for the children's insurance program.

According to Chris Littell, owner/operator of Valley Vending in Martins Ferry, the new taxes have people switching brands, switching products and even quitting all together.

"They are switching to cheaper bands or cutting back," he said. "A lot of stores are shutting down. There are a couple stores in Dillonvale, one in Bellaire . . . Hickman's in Wheeling. If you go driving around you'll see a bunch more."

While some have left the smoking behind, there has been an increase in other tobacco sales.

"Snuff has picked up," Littell said. "It seems like a lot of people switched from smoking cigarettes to rubbing snuff because we're selling a lot more of it now."

There has also been a switch from brand names like Marlboro to cheaper brands like Grand Prix and Pyramid.

Littell also said cigar sales are also down slightly, as well a slight decline in the use of loose leaf tobacco purchased by people who roll their own cigarettes.

"It slowed down somewhat but not as much as people would think," Littell said. "They converted all their stuff to what they call fluff tobacco, so you get about the same amount, but it weighs less. But it's more expensive, too."