State governments don’t get a lot of fiscal good news these days, so it was surprising last week when the state of Connecticut announced that a recent $1-a-pack tax increase on cigarettes raised $5 million more than the state had projected. As economists would predict, the daunting total of a $3-a-pack tax in Connecticut — the fourth-highest burden in the country — did reduce the sale of cigarettes. Some smokers reacted to the ... Jump to full article >>

Two of the three Democrats who want to be South Carolina’s next governor would use tax increases to help ease a looming budget crisis. The third says the fix is simple: Simply allow video poker to return and tax it. State Sen. Robert Ford says he wants to fix the budget with gambling. State Education Superintendent Jim Rex and state Sen. Vincent Sheheen say the state should consider tax increases such as raising the sales tax cap on cars. ... Jump to full article >>

The use of smokeless-tobacco products reached an 11-year high among 12th-graders nationwide in 2009, according to the annual Monitoring the Future study released yesterday. The study by University of Michigan researchers found that 8.4 percent of 12th-graders used the products within a 30-day period — the highest level since 8.8 percent in 1998. The rate had been as low as 6.1 percent in 2006 and was 6.5 percent in 2008. The rate of use am ... Jump to full article >>

Sharp increases in the price of cigarettes in January 2010 could fuel an explosion in tobacco smuggling, the Tobacco Retailers Alliance (TRA) has warned. The proposed increase to VAT announced in the chancellor’s pre-Budget report will mean a price rise of around 13 – 18p on a packet of 20 cigarettes. Retailers fear the cost increase will push more smokers onto the black market in tobacco products, which are typically sold at half th ... Jump to full article >>

The government is planning a tax hike on cigarettes next financial year, which would send prices for a pack of 20 from around 300 yen to between 340 and 360 yen. While the Health Ministry’s proposal for a one-off boost of 10 yen per cigarette is also still on the table, a series of smaller increases has also been suggested. A hefty dent in smokers’ wallets was part of the Democratic Party of Japan’s election manifesto in an att ... Jump to full article >>