New Prices for Drinkers and Smokers

Published on February 6, 2008 1:25 PM

Manhattan officials have organized a parade for lovers of cheap malt liquor (malt liquor is a form of beer but not sold as beer) and low-end cigars in the streets and parks of the city.

The State Legislature is planning to close a multibillion-dollar budget deficit by raising taxes on small cigars like White Owl and Swisher Sweets and malt liquors like Colt 45 and Olde English “800”. The governor’s plan would increase the tax on malt liquor from 11 cents a gallon to $2.54 a gallon. Malt liquor can contain about 9 % of while beer and about 5 % of alcohol by volume. A 40-ounce malt liquor will cost up to $2.50, while the equal amount of beer – $3.50 or more.

The governor intents raising up to $18 million from the malt liquor tax and $5 million from the extra cigarillo tax a year.

Little cigarillos or cigars have the same size as cigarettes but are wrapped in a tobacco leaf instead of ordinary cigarette paper. And state representatives claim that these two products will be taxed similarly.

From now on cigarillos will be taxed as tobacco products, at 37% of the wholesale price. And, according to the governor’s proposal, cigarillos will now carry a tax stamp too.