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People keep smoking despite increased prices

In spite of a dramatic increase in cigarette prices that would be increased even more, sales reports show that the most part of customers still keeps buying cigarettes and other tobacco products.

Cigarette prices were supposed to rise on April,1 when the bill signed into law by President Obama enters into force, signed a bill to raise federal excise taxes on all tobacco products starting April 1. However, prices for the majority of cigarette brands and tobacco products were increased sharply ten days ago.

Betty-Ann Goldman, owner of Smoking Country shop, confirmed that Philip Morris and Lorillard cigarette brands jumped by 71 cents per pack or $7.10 per carton. R.J. Reynolds increased prices by 44 cents several days after its main rivals.

Therefore, America's best-selling brand Marlboro can be bought for $3.99 per pack and $38.49 per carton these days. Simply imagine that six years ago Marlboros were about $20 per carton, it is rather unbelievable isn't it?

"I haven't met a significant decline in sales of cigarettes, however, I faced an enormous number of complaints from my regular customers," Smoking Country shop owner stated. "They keep asking me not to increase the prices, but I am not responsible for that since it was not me who increased the prices."

One of the shop visitors Misty Thompson came from neighboring Georgia to stock for cigarettes since in her native city a pack of Marlboros costs $4.72, so she decided to hit the road to buy cigarettes for her and some friends of hers. She as well complained about unbearable prices.

Another customer James Jameson came to the Smoking Country shop to buy a pound of tobacco for rolling and was astonished when Mrs. Goldman told him that the price for a bag of tobacco is to be increased by $10. Hearing that news, he decided to buy twice as much as he previously wanted.

Sean Raytheon, the manager of Dirt Cheap Tobacco store said they have not experienced noticeable difference in tobacco products sales, but insisted that the government should not have singled out only smokers; they could have imposed taxes on other sins like alcohol or gambling

Owen Nielsen, owner Dirt Cheap Tobacco store confirmed that not all cigarette manufacturers raised their prices. He said he thought that major manufacturers have increased prices to generate extra profits before the federal tax enters into force. However, he said they made a mistake because many smokers simply preferred to buy less expensive brands like DTS instead of emptying their pockets for Camels or Marlboros.

Mr. Nielsen showed that Virginia were $39.10 per carton in his store and at the same time the least expensive cigarettes in his shop were $27.73 per carton

According to the federal government's proposal the federal tax increase, making up $ 1.01 per every pack of cigarettes would be used to funding the health insurance program for children. The estimated $ 33 billion in revenue would cover 4 million uninsured children from low-income families. The program received the name of State Children's Health Insurance Program.

State officials as well decided to increase excise tax on cigarettes since they have been facing enormous budget shortfalls thus they have to impose more taxes to cover the holes in budget.


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