New York legislatures on Monday approved an emergency budget bill that included the hike of the state's tax on cigarettes by an additional USD 1.60.

At USD 4.35 a pack New York now has the nation’s highest state cigarette tax. Including city and federal levies, a single pack is taxed in total at USD 6.85, which translates to a sales price of USD 12 to USD 13.
The new tobacco levy will also drive up the tax charged on cigars and chewing tobacco to 75 per cent of its wholesale price.
The tax hike came as part of an emergency spending plan to keep New York government running for another week. The new tobacco taxes will raise an estimated USD 290 million to help plug the state's USD 9.2 billion deficit, according to Gov. Paterson's budget office. The emergency bills also includes USD 150 million from the collection of taxes on cigarettes sold on Indian reservations, setting up a likely court battle with the Indian tribes. (pi)