Cigarette Sales Fell because of the Tax Increase

Published on December 4, 2009 1:01 PM

In almost all countries cigarettes taxes were increased, in order to decrease the smokers’ number. This is the main cause why cigarette sales have fallen sharply across Florida. A $1-a-pack tax increase took effect on July 1, and dropping nearly 50 percent in other counties.

Scientist showed that cigarette sales that completely topped 100 million packs per month dropped to 73 million packs the month the tax became law. Since then, sales have inched back to around 78 million packs but remained well below prior levels. Those who support the new legislation declared that the tax is meeting its public health objective: getting smokers to quit. However critics sustained that many people are simply buying their cigarettes elsewhere or switching to other brands that aren’t subject to the higher tax, like small cigars.

The state load on cigarettes is now $1.34, compared with the 34-cent tax that had been in place since 1990. Rep. Jim Waldman, D-Coconut Creek, a cigarette tax champion, explained: "It’s working exactly the way it was designed to work. People are quitting. If I could, I’d raise it another dollar."

The state tax isn’t the only factor which affected cigarettes sales. A 62-cent federal cigarette tax increase also went into effect last April. As it is known Florida is a national leader in job loss and home foreclosures, which is of course pressuring some of the state’s 2.7 million smokers. Scientists reported that the most dramatic decay in cigarette sales was in Miami-Dade County. In June, when the month before the higher tax took effect, stores owners sold 8.9 million packs, and a month later, 4.4 million. For example cigarettes sales in Broward and Palm Beach counties also met a similar primary decline. Broward’s monthly clip of about 6.5 million packs now is below 6 million packs a month. And Palm Beach County cigarettes sales dropped from around 5.5 million packs to 4 million.

Despite the acute falloff in cigarette sales, the new tax is carrying in as much revenue as supposed. Expecting a drop in smoking rates, state economists forecasted that the extra $1 charge would generate $958 million this year. They declared that through October, the cigarettes tax had brought in $325 million. Dramatically lower cigarette sales certainly will reduce the state’s smoking rate, which is 20 percent for adults, but how much is not clear yet.