Cigarette tax increases force New York and Vermont smokers to pay higher prices.

Starting 3 June, smokers in New York have to pay USD 2.75 (EUR 1.75) per pack in state taxes, a jump from the previous tax of USD 1.50. The tax increase makes New York the state with the highest cigarette tax, surpassing New Jersey at USD 2.58 a pack. Cigarette taxes will raise a total of USD 1.3 billion for the state budget in fiscal year 2008-2009, including the new tax.
Before the new tax, the average price of a pack of cigarettes was USD 5.82 state wide, and about USD 8 a pack in New York City, which levies its own taxes. The new retail price for a pack in the city could now soar past USD 10 depending on the store.
Similarly, starting on 1 July, the state tax on cigarettes in Vermont is going to increase from USD 1.79 a pack to UDS 1.99. Once the higher tax is implemented, Vermont will have the 11th highest tobacco tax in the United States. The revenue raised from the tax will help fund state health care programs. (pi)