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Federal tobacco tax to go up in April 

Customers angry that some companies already have raised prices
Jump to full article: Gainesville (GA) Times, 2009-03-19
Author: Debbie Gilbert

Intro:

On April 1, the federal tax on cigarettes will jump from 39 cents per pack to $1.01. Not surprisingly, many smokers would like to stock up on cigarettes now, to save a little money before the price increase goes into effect.

But that strategy has been thwarted by major tobacco companies, who already have raised prices on their products. Since the feds won’t start collecting the tax until April 1, for now the extra money is going into the pockets of the companies, reportedly to pay taxes on their own stockpiled inventory.

Kenneth Head of Gainesville, a lifelong smoker, was outraged when he went to buy cigarettes last week.

"I paid $54 for a carton of Camels," he said. "A month ago, it was about $42."

Head might have had to pay even more if a bill to raise the state tobacco tax by $1 per pack had been passed by Georgia General Assembly. But the legislation didn’t come up for a vote in this year’s session.

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