Effective Wednesday April 1st, the tax on tobacco products increased as a part of an Act that President Obama signed earlier this year.


The Children’s Health Insurance Program Reauthorization Act signed on February 4, 2009 is an attempt to generate $32.8 billion for the health insurance program for children.


The national tax increase has smoking tobacco triple in federal tax to the cost of $1.01, 62 cents more than in previous years.





“Just last month the price for a pack of cigarettes was $3.55,” said Anthony Merino, manager of a local Shell Station in Statesboro, Ga. “Now the cost is $4.35 and that does not include state tax.”


The price for cigarettes is not the only increase on products being taxed. With this bill in place, all tobacco products like chewing and smokeless tobacco are seeing double in tax increase.

Chart above shows increases in tax on various tobacco products. Source: TobaccoIssues.com

What does this mean for Georgia residents? Tobacco is a major cash crop in this region and the tax increase has upset consumers and distributors alike.


“We can’t do anything about, it’s the law,” said Merino. “But customers complain and we are selling less on all tobacco products.”


Merino is one of many convenient store managers that have seen their distributors lower the supply because of the decrease of demand on cigarettes and other tobacco products.


The Federal Government is hoping that by expanding the State Children’s Health Insurance Program (SCHIP) will create more revenue for children’s health insurance as well as providing an incentive for current smokers to quit.


“It’s good what they are trying to do,” said 24-year-old Georgia Southern University student, Byron Mattheeussen. “But I am not smoking anymore if it gets higher.”


Many supporters of the Act see more positive aspects than negative.

Shari Blackburn