Cigarette and Tobacco News:

tobacco tax could reduce smoking

Read Complete Article: Tuscaloosa (AL) News, 2009-03-31
Author: Wayne Grayson Staff Writer



Summary:
State and local health officials agree the recent 62-cent increase in federal cigarette taxing will mean fewer smokers in Alabama -- and some health changes.State Health Officer Don Williamson said the tax would result in a measurable decline in smoking prevalence for the state.

'The most effective way to reduce tobacco consumption is with tobacco tax increase,' he said. 'I don't think there's any doubt that in doubling the tax in addition to all the other economic hardships facing people today that a large number will have to quit.'

The tax goes into effect Wednesday. Added to Alabama's state tobacco tax, it means each pack of cigarettes will be taxed a total of $1.44. Williamson said the tax not only means more money to fund children's health care, but it also saves state money in other ways...

In the past, as cigarette prices have been raised, there has always been a temporary drop in tobacco sales and use, Blum said.

'But I don't think we would still be talking about raising prices if consumption wasn't at some point leveling off,' he said.

Through the years, tobacco companies have become used to adapting to the dynamics of their market, Blum said.

'You'll start to see all sorts of price discounting. You'll see two-for-one sales or three-for-one sales. There will be coupons available on the Internet,' he said. 'The companies are all very adept at maintaining their users.'

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