Cigarette costs hike made smokers foam with anger
Published on March 23, 2009 5:44 AM
On the threshold of federal tax increase on cigarettes and tobacco products that enters into effect within two weeks, principal cigarette companies have increased retail prices for their products to around 80 cents for a pack of cigarettes.
Julia Jameson, Port Angeles resident came to the Tobacco Outlet Store on Tuesday and was astonished when heard that the price for her favorite Marlboros have jumped and now she should pay $16 more for her two cartons. She complained that puffing on her favorite cigarettes has become a very expensive habit. She also said that she was sure that prices would remain the same until April, 1; otherwise, she would have bought more cartons during her previous visit a week ago.
Alexa Brown, the store owner replied that they have not been aware of the increase too, and they were shocked even more since the latter increase could put the business to the end.
Jameson paid $73.70 for two cartons and said that she would not give up her habit, but only would smoke less.
Julia Jameson, who is now 58, began smoking at the tender age of 14. She said she is confident that the sick children would get not more than half of all the profit collected with the help of April’s tax hike with another half getting into Washington’s bureaucrats pocket. As regards the price increase imposed by tobacco industry, Mrs. Jameson believes that the only reason for that increase is greed of cigarette producers.
Philip Morris, the main tobacco products manufacturer in the U.S. increased prices on all its brands on March, 9. Its major competitors - R.J. Reynolds and Lorillard Tobacco Co. — followed its example by raising prices on best-selling brands.
And let us remember that the prices can grow even more since North Carolina delegates are now considering imposing additional state tax on cigarettes and tobacco products. Should the bill be approved the tax on each pack of cigarettes would jump to $1.19.
The current tax is 35 cents per pack of cigarettes that permits the state to gain around $240 dollars every year.
The latest increase in cigarette prices has disappointed many people from smokers to tobacco industry workers. Malia Somli, the salesperson from the Tobacco Market in Greensboro complained that the shop owners have notified her about possible dismissal in case cigarettes sales would keep decreasing. Somli said that she had worked in the shop for 3 years and has been the only bread-winner in her big family consisting of 6 people because her brother and his wife have already been fired. “I don-t know how we gonna live,” she cried.
The recent surge in prices and the expected tax increase would definitely make people to consider the possibility of either giving up or switching to buy cheaper brands or even rolling their own cigarettes.
Many people have been simply shocked by the decision of cigarette companies to increase prices in these difficult times, when lighting up a cigarette has become the only pleasure for fired and distressed people.
On April 1, also called the April Fool’s day, thousands of smokers will get an “amusing” joke from the federal government, consisting in the hike of cigarette tax from 39 cents to $1.01 per pack. The tax would be also applied to all tobacco containing products. The corresponding bill was signed be President Obama in January, with all the revenue going to provide medical insurance for uninsured children.
According to John M Fowler, of University of North Carolina Economics Department, the cigarette producing companies have traditionally raised the prices for their production every time an excise tax was imposed, since this is the simplest way to minimize looses.
Retailers were more than surprised when found out that the manufacturers have increased prices because they did not even inspect any price hikes before April 1.
