New Yorkers that smoke are going to have to dig a little deeper into their pockets if they want to continue smoking, and owners of corner stores are going to feel the effects.
New York now has the highest tax on cigarettes in the country since the state legislature approved a $1.60 increase per pack. The measure went into effect on July 1st as part of an emergency budget to keep the state government functioning. But community activists say that the new tax is going to make life more difficult for owners of bodegas.
"We hope that this doesn't mean that bodegas around the city will shut down," said Fernando Mateo, president of the organization Hispanics Across America. "I believe that the decision was poorly made."
The average price of cigarettes in the city is nearly $11 a pack, with $1.50 for municipal tax, $4.35 in state tax, and $1.01 in federal tax included. Santo Driando, owner of Candy and Grocery Store Inc. in Corona, said that in order for him to make a profit, he has to sell packs of cigarettes for at least $13. Currently, he is selling them for $12.
"We were barely surviving before," said Driando. "Right now, we don't know what we are going to do. I don't think we will be able to continue to sell cigarettes."
Apolenar Canela, an employee at Avenue Grocery Inc. in Corona, said that she used to order up to eight boxes of cigarettes a week. Now, she only orders four because people don't purchase the popular Newport brand nearly as much as they used to, given that the price jumped from $10 to $12.
"We've been selling less cigarettes," said Canela, who has been working at the bodega for almost two years. "People come in and they don't want to pay $12 for a pack of cigarettes."
According to the New York City Department of Health, the tax increase has played an important role in the fight against tobacco addiction. More than 300,000 adults in the city have stopped smoking since 2002, in part because of the hike in prices. The $1.60 tax increase means that people who smoke a pack a day will spend more than $300 a month and $4,000 a year.
"Now is the time to quit smoking," said New York City Health Commissioner Thomas Farley, M.D., M.P.H. "Smoking is dangerous to your health and your wallet. For the many New Yorkers hoping to save money, this is a good time to do it."
State Senator Jose Peralta (D-District 13) said that perhaps the tax increase might lead young people to stop smoking, but that older people who are addicted won't quit. He said that he doesn't think owners of bodegas will be affected because people will always buy cigarettes.
"I think they will see their regular customers return, but not their newer customers," said Peralta.
