A number of retailers are strongly opposed to a cigarette tax increase included in the Maine state budget which lawmakers are now considering.
New England Convenience Store & Energy Marketers Association Executive Director Peter Brennan says it’ll drive shoppers of all products to New Hampshires, where tobacco taxes are lower.
“They’re going to do all their shopping there,” said Brennan. “And that’s where we see primarily the risk from our retailers. It’s that they’re losing entire customers, not just one small percentage of their sales that might be a tobacco product. No, it’s the entire basket. So, it’s really, it’s bad thing for retailers.”
Brennan also says the tax will unfairly hit low-income people, who are statistically more likely to be smokers.
“It’s incredibly regressive,” Brennan said. “You know, any sales tax is regressive, but this is going to impact people that can afford it the least, the most.”
Supporters of the cigarette tax hike say it’ll discourage younger people from smoking and help curb Maine’s higher than average smoking rate.
It’s endorsed by public health organizations nationwide, including the American Heart Association and the Campaign for Tobacco-Free Kids.
The tax will increase the cost of a pack of cigarettes, and all tobacco products by $1.50. It’s larger than the $1.00 increase proposed earlier by Governor Janet Mills. It would mark the first time the state has touched the cigarette tax since 2005, when it increased from $1 to $2 per pack.
