Store owners fear cigarette tax increase

CONCORD - Owners of grocery, convenience and retail distributor stores lobbied state senators Monday to cut - if not eliminate - a proposed increase in the cigarette tax. The House-approved $10.4 billion, two-year state budget plan relies heavily upon this tax, increasing it from 80 cents to $1.25 per pack. Gov. John Lynch had proposed the tax only be raised to $1.08 to finance his budget plan. John Dumais, president and chief executive officer of the New Hampshire Grocers Association, claimed his lobbying organization lost five small businesses that went under after the Legislature last raised the tax July 1, 2005. Even though the state took in more money from the higher tax, it sold six million fewer packs of cigarettes in 2006 compared to 2005, he explained. "We aren't talking about any small consequences for the state," he said. The grocer lobby claims that for every $1 in cigarette pack sales, the state receives another $3.40 in other purchases. Studies have concluded 40 percent of cigarette sales come from out-of-state residents. Massachusetts' residents make up the largest portion of that group. Massachusetts Gov. Deval Patrick has said he would oppose any increase in that state's tobacco tax, which is $1.51 per pack but doesn't include 20 cents that comes from applying the state's 5 percent sales tax. "Massachusetts sold more packs in 2006 and profited from our last increase so you can bet they are hoping to do even better if we make the same mistake again," Dumais warned. Supporters insist the state's retail sector would still profit from cigarettes sold at the higher price and that it would discourage teens from starting the addictive habit. Ray Tetu said the higher tax would force his business to post a larger bond to cover the payment of tax stamps onto all cigarettes sold from his Manchester Wholesale Distributors Inc. The firm employs 65 and has been in the family since 1939, but Tetu claims this latest proposed increase may put him under. "If MWD and the other independent distributor within the state of New Hampshire were to close its doors tomorrow, there would not even be a hiccup for a split second for cigarette supplies," Tetu said. Manchester Democratic Sen. Lou D'Allesandro, who is chairman of the Senate panel writing the budget, said it's too early to know how much of a tax increase is needed. The finance panel is spending all of this week making final decisions about spending priorities for its version of the 1,100-page budget bill. John Ganos, owner of the State Line Store on Route 13 in Brookline, said he attracts out-of-state purchases by advertising in daily newspapers as far removed as Worcester, Mass. "Is this tax increase a good bet for the state? I know it is not for my business," Ganos added in a written statement. "And when the state is finished taxing this source into oblivion, where will they turn next?"

Philip Morris to buy South African snuff maker

Philip Morris International Inc., maker of Marlboro and other cigarettes for sale overseas, has agreed to buy a Swedish company's South African snuff and pipe-tobacco operations for roughly $222 million.
Philip Morris International estimated that Swedish Match South Africa Ltd.'s products account for about 31 percent of total tobacco consumption in South Africa. The brands involved in the deal, announced yesterday, include Boxer, Best Blend and Taxi.
In March 2008, Philip Morris International, with offices in New York and Lausanne, Switzerland, was spun off from Henrico County-based Altria Group Inc., which owns Philip Morris USA.
Swedish Match also owns Swedish Match North America, a Chesterfield County-based maker of cigars and smokeless tobacco.
Spokesmen for Altria and Swedish Match North America said their operations are not affected by the deal.
The deal "represents an excellent strategic fit for our business in South Africa," Jean-Claude Kunz, president of Philip Morris International's Eastern Europe, Middle East and Africa region, said in a statement.
Swedish Match South Africa reported sales of roughly $88 million last year.
Philip Morris International, the world's largest non-governmental cigarette seller, hopes to boost sales of smokeless-tobacco products to offset decreased demand for cigarettes because of concerns about health, smoking bans and price increases.
In February, Philip Morris International announced a 50-50 joint venture with Swedish Match AB to make and sell smokeless products such as snus -- teabaglike pouches that users stick between cheek and gum.
Philip Morris International said it expects to complete the acquisition of the South African company by the end of the fourth quarter, after approval by South African regulators.
"This agreement with Philip Morris International is in line with Swedish Match's strategy to focus on smoke-free tobacco, cigars and lights products," Swedish Match AB President and CEO Lars Dahlgren said in a statement.
Swedish Match South Africa will continue to distribute lighters, matches and cigars for Swedish Match, the company said.

Putting Loved Ones At Risk Of Secondhand Smoke With Cigarettes

Once upon a time, a cigarette could be smoked just about anywhere. There were no rules or regulations regarding where someone could smoke a cigarette or whom they were around when smoking. Then there came the concerns with tobacco use and how it could affect one's health. Soon, interest groups and concerned citizens were calling for cigarettes to be banned.

Although cigarettes today are not banned or illegal in any form, they are no longer allowed to be used indoors at restaurants, theaters, or other venues. In fact, if a driver is smoking with a child in the car and was pulled over for a non-smoking citation, the officer can issue a ticket for tobacco usage in the car. Millions upon millions of people around the world are now aware of the many side effects associated with smoking tobacco cigarettes.

What could have been done by a teenager for rebellious reasons could now be a full-fledged addiction to the nicotine found in the cigarettes and could even become a lifelong habit that will only result in an illness that kills the person. By now, many are aware of the illnesses associated with smoking cigarettes. Heart and lung disease, cancer, and respiratory problems are just the beginning. Lethargy, a lack of strength, and shortness of breath when engaging in physical activity are all symptoms that a smoker can feel as well.

In addition, when someone is smoking a cigarette around anybody, that person is being exposed to secondhand smoke. In some cases, the secondhand smoke is actually worse than smoking the cigarette itself because the person who is smoking the cigarette is used to the experience, and his body has adapted to the nicotine, tobacco, and chemicals that are being inhaled. On the other hand, the person who normally does not smoke and is exposed to the toxins found in the cigarette smoke occasionally might have a worse reaction because their body is not used to it.

It is not uncommon to hear of a spouse of a smoker who contracted lung cancer as a result of being exposed to the smoke for prolonged periods of time. It is not uncommon to hear of a non-smoking black jack dealer working in a casino who feels the side effects of tobacco usage around him. The results are varied, and the side effects are serious. Protecting family, friends, and colleagues from secondhand smoke is as easy as smoking a cigarette on your own time when they are not around.