2FIRSTS | New York’s budget plan would apply a 75% wholesale tax to nicotine pouches, raising projected revenue
New York proposes a 75% wholesale tax on nicotine pouches like ZYN, projected to raise $18-$44 million, sparking debate over public health and affordability.Summary
New York Governor Kathy Hochul is proposing a 75% wholesale tax on nicotine pouches, mirroring the tax rate for cigarettes, as part of her $260 billion state budget. This move is projected to generate $18 million initially, increasing to $44 million when fully implemented. Philip Morris, the manufacturer of ZYN, has voiced concerns that the tax could hinder adults from switching from cigarettes and raise affordability issues. Experts like Cristine Delnevo from Rutgers University advocate for a differentiated tax approach, balancing public health goals with harm reduction strategies. The debate also centers on the potential for increased underage use and the need to address illegal cigarette sales, with some arguing the tax is counterproductive by limiting access to less harmful alternatives.
(Source：2Firsts)
