CHILI, N.Y. — The state is considering a 75% tax increase on nicotine pouches, aiming to deter children from purchasing them. However, makers argue it could fuel a black market and hinder smokers trying to quit.
Inside the Good Neighbors Convenience store, owner Bashir highlights the challenge of keeping nicotine pouches like Zyn away from minors. “We keep them right here, right in front of the customer,” Bashir said.
Currently, a can of Zyn costs $6 before tax, while a pre-tax pack of Newports is $17. Berkeley Brean, News10NBC, pointed out, “If you added a 75% tax on (Zyn) now you’re getting closer to the cost of a cigarette.” Bashir agreed, “To Newports, exactly.”
At a budget hearing, the proposed tax faced scrutiny from lawmakers. Assemblyman Phil Palmesano, (R) Corning, noted, “You have people that want to quit smoking, that have quit smoking and now this might be an option for them. The proposal is going to make it more expensive for people who might want to get off cigarettes.”
Interim Commissioner Amanda Hiller responded, “But it will be less expensive than cigarettes by an order of magnitude.”
Dr. Brian Erkkila, Head of Scientific Engagement at Phillip Morris International U.S., emphasized the potential impact on public health. “28,000 people die from smoking cigarettes in New York every year,” he said, adding, “It’s costing the state $7 billion a year.”
Erkkila warned the tax could deter smokers from switching to safer alternatives. “Making a product that people can switch to that can really reduce their risks much more expensive… will really prop up that cigarette market and keep people from switching away,” he said.
The state’s focus remains on protecting children. “We have high taxes to create a barrier for entry to children,” Hiller said. “That’s always been a core rationale for having some of the highest taxes on these products in the country.”
A Monroe County survey shows a decline in teen nicotine vape use, though it doesn’t account for pouches. Brean asked Bashir about minors attempting purchases. “Oh yeah. Plenty of times,” Bashir said. “As a family business we always strive to check IDs.”
The proposed tax increase, part of the governor’s budget, is set to take effect April 1. The state anticipates it will generate about $18 million in the first year. Quit-smoking products approved by the FDA are excluded from this tax.
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