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High Cigarette Prices Means Fewer Smokers

As the cigarette prices increase in California, fewer people are purchasing cigarettes. According to the most recent fiscal year, sales in cigarettes have declined dramatically. In 1999, there was an 11.9% decline in cigarette purchases, and now the fiscal for 2009 is at 8.1%. This is the best decline California has seen in a very long time. The fiscal in 1980 with 2.8 billion packs, the sales in cigarettes is at 65.6% to 972 million packs.

People are smoking less and less and this kind of decline has not been heard of since 1985. Health risks and stricter restrictions on where people are allowed to smoke did have an impact on the decline. However the cigarettes have gotten to be more expensive, about 18.6% more expensive since November 2009.

In February of 2009, a federal tax rate increase went into effect, making a huge boost in taxes with up to 62 cents to $1.01. The California tax rate has exceeded to 87 cents. So this means that customers are paying up to almost $2 in taxes for each pack, which 37% of that is retail price. The manufacturers also had a role in the increasing price of cigarettes. They raised prices 4.2% on the fiscal for 2009, only to deal with the shipping demand. Lorillard Inc., Altri Group Inc., and Reynolds American Inc., three major cigarette manufacturers in the U.S., said they produced lower volumes of cigarettes in the most recent quarter.

Many of the manufacturing companies had such a decline on their sales that now they are looking at other marketing ideas such as snuff and chewing tobacco.

A fresh pack of cigarettes costs about $5.09 in California. As a smoker myself, I am looking into quitting smoking because of the sales of cigarettes. Whether it is the constant advertisements on TV for quitting smoking or the hole burned in my pocket after buying cigarettes, California in my opinion is buckling down. Having bad breath on a fancy date or just smelling stale no longer is attractive in my books. Keep that tax up California and let’s get everyone tobacco free….

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Filed under: Addiction, Latest News · Tags: addicted to smoking, California Cigarettes, Cigarette price increase, cigarette sales decline, Cigarette smokers, cigarette tax, expensive cigarettes, how to quit smoking, nicotine addiction, Quitting smoking, smoking cigarettes

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