Tax Increase
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Government's like to find easy targets in order to raise money from taxes. Tobacco taxes increase constantly.
'"There's very good evidence that adolescents are the most price-sensitive," Klein said.
New York state, which has among the highest tobacco tax rates in the nation, has seen a decline in teenage smoking. States with lower taxes have not, Klein said.
Last year the state increased its tax on cigarettes by $1.25, from $1.50 to $2.75 per pack.New York also imposes a 4% state sales taxes on tobacco products, said Tom Bergin, spokesman for the state Department of Taxation and Finance. Local sales taxes push up the overall sales tax to more than 8% in Yonkers and New York City and on Long Island.But the biggest impact is expected to be hundreds of miles away from the Empire State, where tobacco taxes are low.
Increased taxes on tobacco will lower its demand. Revenues and profits margins are affected, because tobacco companies will either decrease taxes or raise prices in order to sell their products."
Source:http://www.usatoday.com/news/health/2009-03-27-tobacco-tax_N.htm …
SWOT Analysis Survey
SWOT Threat: Tax Increase
Government's like to find easy targets in order to raise money from taxes. Tobacco taxes increase constantly.
'"There's very good evidence that adolescents are the most price-sensitive," Klein said.
New York state, which has among the highest tobacco tax rates in the nation, has seen a decline in teenage smoking. States with lower taxes have not, Klein said.
Last year the state increased its tax on cigarettes by $1.25, from $1.50 to $2.75 per pack.New York also imposes a 4% state sales taxes on tobacco products, said Tom Bergin, spokesman for the state Department of Taxation and Finance. Local sales taxes push up the overall sales tax to more than 8% in Yonkers and New York City and on Long Island.But the biggest impact is expected to be hundreds of miles away from the Empire State, where tobacco taxes are low.
Increased taxes on tobacco will lower its demand. Revenues and profits margins are affected, because tobacco companies will either decrease taxes or raise prices in order to sell their products."
Source:http://www.usatoday.com/news/health/2009-03-27-tobacco-tax_N.htm
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