Cigarette Tax Affects Retailers

cigarette tax increase

E-Cig World reported recently that their business in Princeton yet had not felt the effects of cigarettes tax increase in Minnesota which now is $1.60 per pack. The new law came into action on July 1.

However, other e-cigs businesses say they were affected in a big way. These are E-Cig Healthy Living and Prince Tobacco, which sells e-cigarettes along with traditional tobacco products. The representatives of E-Cig Healthy Living say about customers increase the last week.

Cody Carrol who represents E-Cig Healthy Living says the main cause of smokers who come to buy e-cigarettes is not the attempt to quit smoking but the lower price on this electronic device.

Nick Tarifi who owns Prince Tobacco in Princeton says the number of cigarettes sales have lowered due to tax increase.

The state Legislature this past session increased the tax on a pack of cigarettes from $1.23 per pack to $2.83.  The money from taxes are going to be invested in building new Vikings football stadium.

Also Nick Tarifi said with new tax increase more people started more actively fight with their smoking habit. Besides this he noted that more smokers buy loose tobacco to roll their own cigarettes to cut the cost of smoking.  Also the sales of e-cigarettes have been increased.

Now smokers ask more often cheap cigarettes. The light versions of cigarettes are cheaper and the minimum a smoker will pay for a pack of cigarettes is $5.75. Most popular cigarette brands today are Marlboro and Camel and they do cost in the markets around $7.99 now. Nick Tarifi says that inspite of tax increase and multiple warnings, people continue to smoke. They just find cheper cigarettes for themselves.

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