The announcement was made after trading hours on Monday, 21 December 2009.Meanwhile, the BSE Sensex was up 111.95 points, or 0.67%, to 16,713.15.
On BSE, 25,720 shares were traded in the counter as against an average daily volume of 46,735 shares in the past one quarter.
The stock hit a high of Rs 114.80 and a low of Rs 110 so far during the day. The stock had hit a 52-week high of Rs 126.55 on 17 November 2009 and a 52-week low of Rs 36 on 9 March 2009.
The stock had underperformed the market over the past one month till 21 December 2009, falling 4.83% as compared to the Sensex's 2.47% decline. It outperformed the market in past one quarter, rising 9.45% as against 0.84% fall in the Sensex.
The small-cap cigarette maker has a current equity capital of Rs 17.60 crore. Face value per share is Rs 10.
The current price of Rs 110.75 discounts the company's Q2 September 2009 annualised EPS of Rs 0.27, by a PE multiple of 410.
The board also approved a proposal for development, or sale of properties at Andheri (Mumbai), Hyderabad and Guntur. The company will hold an extraordinary general meeting (EGM) on 18 January 2010 to take shareholders' approval.
On 24 September 2008, Golden Tobacco's board of directors had approved a demerger of realty business in into a separate company. Shareholders will get one equity share in the new company for each share held in the existing company.
Golden Tobacco's net profit slumped 92.70% to Rs 0.12 crore on 20% rise in net sales to Rs 29.99 crore in Q2 September 2009 over Q2 September 2008.
Golden Tobacco manufactures and markets cigarettes and processed tobacco. The company makes various categories of cigarettes, namely full flavor, lights, ultra lights, menthol, menthol lights and extra menthol lights.
Promoters have pledged 5.28 lakh shares representing 3% of the equity capital of the company. The total promoter shareholding in the company is 27.19% (as on 30 September 2009).
Showing posts with label smoking news articles. Show all posts
Showing posts with label smoking news articles. Show all posts
Nov 23, 2009
Map Togo to ban smoking in public
Togo is considering a bill to ban smoking in public. The Ministry of Health of the West African country said tobacco related deaths in the country has reached alarming proportions and it is about time it saves its citizens. Smoking prevalence in the tiny country is 31.3% and civil society organizations are helping to save the situation.
A representative of the Minister of State for Health, Dr. Sadjo-Hetsi Dzrevon said: “Tobacco has killed a lot of people in Togo that is why the ministry of health is concerned and working with NGOs to stop this dangerous trend”.
The National Alliance of Consumers and Environment of Togo said in a document: “Tobacco consumption is spreading more and more, especially among the youth. The tobacco industry is increasingly directing its harmful advertising toward young people by sponsoring youth oriented cultural activities. Even though the state has banned tobacco advertising in public and private media, the advertising still exists in many forms in Togo.”
At the moment there is an ongoing legislative process on tobacco control which is expected to culminate into a national legal document that will support the promotion and implementation of the framework convention on tobacco control.
“If these documents are adopted by the legislators it will strengthen existing structures on the ground and also provide a more reliable data on tobacco control in the country.
“Before now we have no consistent data on Tobacco control, with this situational analysis document, we now have a document that we can rely on, we now have a guide that will help us to work on policies. The document is very important for stakeholders working on tobacco control issues in Togo,” Dr. told AfricaNews reporter in Lome.He said: “At the ministry of health we are happy that there is now a reference document that will guide legislation and necessary action on tobacco control.”
A representative of the Minister of State for Health, Dr. Sadjo-Hetsi Dzrevon said: “Tobacco has killed a lot of people in Togo that is why the ministry of health is concerned and working with NGOs to stop this dangerous trend”.
The National Alliance of Consumers and Environment of Togo said in a document: “Tobacco consumption is spreading more and more, especially among the youth. The tobacco industry is increasingly directing its harmful advertising toward young people by sponsoring youth oriented cultural activities. Even though the state has banned tobacco advertising in public and private media, the advertising still exists in many forms in Togo.”
At the moment there is an ongoing legislative process on tobacco control which is expected to culminate into a national legal document that will support the promotion and implementation of the framework convention on tobacco control.
“If these documents are adopted by the legislators it will strengthen existing structures on the ground and also provide a more reliable data on tobacco control in the country.
“Before now we have no consistent data on Tobacco control, with this situational analysis document, we now have a document that we can rely on, we now have a guide that will help us to work on policies. The document is very important for stakeholders working on tobacco control issues in Togo,” Dr. told AfricaNews reporter in Lome.He said: “At the ministry of health we are happy that there is now a reference document that will guide legislation and necessary action on tobacco control.”
Nov 10, 2009
Light cigarettes will not help you quit, study says
Don't light up that Marlboro Light assuming it's a good way to start weaning yourself off cigarettes.
People who switch to "light" cigarettes are 50 percent less likely to stop smoking than people who puff away on standard brands, according to a new report in the journal Tobacco Control.
Many people believe light cigarettes are healthier than regular smokes, even though they're not, said Dr. Hilary Tindle, lead author and an assistant professor at the University of Pittsburgh School of Medicine. So when people shift to light brands they may lose motivation.
Also, it's possible that people who switch are "hardened" smokers who haven't been successful at giving up their habits in other ways, she said.
The study analyzed data from a government-sponsored survey of more than 31,000 smokers. Thirty-eight percent had switched to light cigarettes, and of that group, 43 percent said they'd changed because they wanted to stop smoking, among other reasons.
People who switched were more likely to try to quit than those who didn't (51 percent versus 41 percent), but less likely to actually stop smoking (9 percent versus 17 percent).
Cigarette-makers don't disagree. "Light cigarettes will not help you quit smoking," said Bill Phelps, a spokesman for Altria Group Inc., which owns Philip Morris USA, maker of Marlboro Light. "People concerned about the health effects of smoking should quit altogether. There is no safe cigarette."
People who switch to "light" cigarettes are 50 percent less likely to stop smoking than people who puff away on standard brands, according to a new report in the journal Tobacco Control.
Many people believe light cigarettes are healthier than regular smokes, even though they're not, said Dr. Hilary Tindle, lead author and an assistant professor at the University of Pittsburgh School of Medicine. So when people shift to light brands they may lose motivation.
Also, it's possible that people who switch are "hardened" smokers who haven't been successful at giving up their habits in other ways, she said.
The study analyzed data from a government-sponsored survey of more than 31,000 smokers. Thirty-eight percent had switched to light cigarettes, and of that group, 43 percent said they'd changed because they wanted to stop smoking, among other reasons.
People who switched were more likely to try to quit than those who didn't (51 percent versus 41 percent), but less likely to actually stop smoking (9 percent versus 17 percent).
Cigarette-makers don't disagree. "Light cigarettes will not help you quit smoking," said Bill Phelps, a spokesman for Altria Group Inc., which owns Philip Morris USA, maker of Marlboro Light. "People concerned about the health effects of smoking should quit altogether. There is no safe cigarette."
Reynolds raising cigarette prices
A decline in demand is not keeping R.J. Reynolds Tobacco Co. from raising the list price on its cigarette brands by 6 cents or 8 cents a pack for wholesale customers.
The price increase, announced yesterday, will take effect Monday.
David Howard, a spokesman for Reynolds, said that the company doesn’t comment on its pricing strategy, but the decision comes five days after Philip Morris USA announced a price increase of 6 cents a pack, which went into effect yesterday.
Reynolds is raising list prices less than a week after reporting that its cigarette-shipment volume fell 11 percent in the third quarter to 20.6 billion cigarettes. Reynolds said that the industry decline was 12.6 percent.
Howard said that the list price is increasing 6 cents a pack for its growth brands - Camel and Pall Mall - and also for Doral, GPC, Kool, Misty, Salem and Winston. All but GPC are considered as support brands.
The list price is being raised 8 cents a pack for its other brands, which include Capri, Eclipse, Lucky Strike, More and Vantage.
Charles Norton, the portfolio manager of the USA Mutuals Vice Fund, said that Reynolds is likely to be able to sustain the third price increase related to its cigarettes since September 2007.
In March, Reynolds raised the list price in the range of 41 cents to 78 cents a pack for wholesale customers, including 41 cents to 44 cents for most of its growth and support brands.
The increase was in response to Congress passing the 62-cent increase in the federal excise tax to pay for expansion of the State Children’s Health Insurance Program. That tax increase went into effect April 1.
In September 2007, Reynolds raised its cigarette prices by a range of 5 cents to 15 cents a pack, including 15 cents for Camel.
“Strong pricing power is one of the underpinnings of our positive view of tobacco, which is a much more important driver of earnings than volume,“ Norton said.
Reynolds said in its third-quarter report that it had a slight market-share drop in cigarettes to 28.2 percent. The market share for Camel, the lead Reynolds cigarette brand, dipped slightly to 7.7 percent. Pall Mall’s market share was at 5 percent, up 2.3 percentage points from a year ago.
A temporary price discount in the spring on Pall Mall attracted smokers wanting to spend less on cigarettes in the recession. Even after the discount ended in May and prices were raised to counter the excise-tax increases, Pall Mall maintained a higher market share.
The company began another discount promotion for Pall Mall on Oct. 5.
Reynolds also raised its full-year earnings projections last week to a range of $4.60 to $4.70 a share - from $4.40 to $4.60 - as a sign of confidence in its strategies.
The price increase, announced yesterday, will take effect Monday.
David Howard, a spokesman for Reynolds, said that the company doesn’t comment on its pricing strategy, but the decision comes five days after Philip Morris USA announced a price increase of 6 cents a pack, which went into effect yesterday.
Reynolds is raising list prices less than a week after reporting that its cigarette-shipment volume fell 11 percent in the third quarter to 20.6 billion cigarettes. Reynolds said that the industry decline was 12.6 percent.
Howard said that the list price is increasing 6 cents a pack for its growth brands - Camel and Pall Mall - and also for Doral, GPC, Kool, Misty, Salem and Winston. All but GPC are considered as support brands.
The list price is being raised 8 cents a pack for its other brands, which include Capri, Eclipse, Lucky Strike, More and Vantage.
Charles Norton, the portfolio manager of the USA Mutuals Vice Fund, said that Reynolds is likely to be able to sustain the third price increase related to its cigarettes since September 2007.
In March, Reynolds raised the list price in the range of 41 cents to 78 cents a pack for wholesale customers, including 41 cents to 44 cents for most of its growth and support brands.
The increase was in response to Congress passing the 62-cent increase in the federal excise tax to pay for expansion of the State Children’s Health Insurance Program. That tax increase went into effect April 1.
In September 2007, Reynolds raised its cigarette prices by a range of 5 cents to 15 cents a pack, including 15 cents for Camel.
“Strong pricing power is one of the underpinnings of our positive view of tobacco, which is a much more important driver of earnings than volume,“ Norton said.
Reynolds said in its third-quarter report that it had a slight market-share drop in cigarettes to 28.2 percent. The market share for Camel, the lead Reynolds cigarette brand, dipped slightly to 7.7 percent. Pall Mall’s market share was at 5 percent, up 2.3 percentage points from a year ago.
A temporary price discount in the spring on Pall Mall attracted smokers wanting to spend less on cigarettes in the recession. Even after the discount ended in May and prices were raised to counter the excise-tax increases, Pall Mall maintained a higher market share.
The company began another discount promotion for Pall Mall on Oct. 5.
Reynolds also raised its full-year earnings projections last week to a range of $4.60 to $4.70 a share - from $4.40 to $4.60 - as a sign of confidence in its strategies.
Nov 5, 2009
Compliance rates on tobacco sting too low: P.E.I.
P.E.I. is planning to toughen the rules for retailers who repeatedly get caught selling cigarettes to minors.The change was prompted by a near record number of stores nabbed during recent compliance checks. Forty-two retailers received a warning, and four more were fined.
The Health Department has been criticized in the past by the Canadian Cancer Society for being too lenient. Retailers only get a warning the first time if they're caught, and a $250 fine if they're caught again. The slate is wiped clean for everyone every three months.
Joe Bradley, manager of environmental health for the province, told CBC News Wednesday the latest results show there's a need to get tougher with repeat offenders.
"We're disappointed. There's no question the compliance on this particular round is probably 80 per cent or a little below 80 per cent, and that's the lowest that we've seen in some time," said Bradley.
"A retailer that has been issued a fine probably would be considered high risk in the future. We're still working on this and we hope to have it finalized within the next couple of weeks or so."
Bradley said retailers will be notified about the changes. He expects new legislation to be in place by Jan. 1.
The Health Department has been criticized in the past by the Canadian Cancer Society for being too lenient. Retailers only get a warning the first time if they're caught, and a $250 fine if they're caught again. The slate is wiped clean for everyone every three months.
Joe Bradley, manager of environmental health for the province, told CBC News Wednesday the latest results show there's a need to get tougher with repeat offenders.
"We're disappointed. There's no question the compliance on this particular round is probably 80 per cent or a little below 80 per cent, and that's the lowest that we've seen in some time," said Bradley.
"A retailer that has been issued a fine probably would be considered high risk in the future. We're still working on this and we hope to have it finalized within the next couple of weeks or so."
Bradley said retailers will be notified about the changes. He expects new legislation to be in place by Jan. 1.
Nov 2, 2009
Tobacco prices distort competition
Ireland’s policy of setting a minimum price on tobacco products distorts competition, a legal advisor to Europe’s highest court has said.
In the case of Commission of the European Communities versus Ireland, the Advocate General said binding prices restricted manufacturers’ freedom to set prices, thereby posing a risk to free competition.
The opinion of the Advocate General is not a final judgement, although the court generally follows it 80 per cent of the time.
The European Commission took Ireland to Europe’s highest court in 2008 over its policy of setting a minimum price on tobacco products to protect public health.
Under an agreement with the Irish Tobacco Manufacturers' Advisory Committee, the Department of Health has a minimum price for 20 cigarettes of about €1.30. This was set using information on volume sales supplied by the tobacco companies for filtered and unfiltered cigarettes.
The Government says the agreement with the tobacco manufacturers was made for the primary purpose of preventing low-cost selling of tobacco products in Ireland.
By setting a minimum retail price for a packet of 20 cigarettes it undermines the ability of retailers to provide special cut- price offers on certain brands. Price control is also seen as a viable way to protect children from becoming addicted to cigarettes and to encourage existing smokers to quit, according to the Department of Health.
In his legal assessment of the arguments the Advocate General said “increases in excise duties are therefore a less intrusive measure than minimum prices, which are thus not necessary”.
A statement issued by cigarette company John Player & Sons today aid “while we don’t oppose the Commission’s view that tobacco manufacturers should have the freedom to determine retail prices for their products, the fact remains that the real minimum price for 20 cigarettes in Ireland is the street price of €4 - €5 euro due to widespread illegal cigarette selling.
This greatly incentivises criminals by giving them huge margins while denying Government badly needed revenues. 1 in 4 cigarettes smoked in Ireland today is not even bought in an Irish shop”.
In the case of Commission of the European Communities versus Ireland, the Advocate General said binding prices restricted manufacturers’ freedom to set prices, thereby posing a risk to free competition.
The opinion of the Advocate General is not a final judgement, although the court generally follows it 80 per cent of the time.
The European Commission took Ireland to Europe’s highest court in 2008 over its policy of setting a minimum price on tobacco products to protect public health.
Under an agreement with the Irish Tobacco Manufacturers' Advisory Committee, the Department of Health has a minimum price for 20 cigarettes of about €1.30. This was set using information on volume sales supplied by the tobacco companies for filtered and unfiltered cigarettes.
The Government says the agreement with the tobacco manufacturers was made for the primary purpose of preventing low-cost selling of tobacco products in Ireland.
By setting a minimum retail price for a packet of 20 cigarettes it undermines the ability of retailers to provide special cut- price offers on certain brands. Price control is also seen as a viable way to protect children from becoming addicted to cigarettes and to encourage existing smokers to quit, according to the Department of Health.
In his legal assessment of the arguments the Advocate General said “increases in excise duties are therefore a less intrusive measure than minimum prices, which are thus not necessary”.
A statement issued by cigarette company John Player & Sons today aid “while we don’t oppose the Commission’s view that tobacco manufacturers should have the freedom to determine retail prices for their products, the fact remains that the real minimum price for 20 cigarettes in Ireland is the street price of €4 - €5 euro due to widespread illegal cigarette selling.
This greatly incentivises criminals by giving them huge margins while denying Government badly needed revenues. 1 in 4 cigarettes smoked in Ireland today is not even bought in an Irish shop”.
Oct 26, 2009
Display ban on tobacco 'benefiting criminals'
A BAN on displaying tobacco products in stores is putting money from tills straight into the pockets of criminals, shopkeepers claimed yesterday.
Retailers Against Smuggling (RAS) said cigarettes sales had fallen dramatically in recent months, with the black market fuelling job losses and costing the industry hundreds of millions of euro.
It maintained cigarette sales can be as high as 40 per cent of a retailer’s annual turnover.
William Hanley, RAS spokesman, said the Office of Tobacco Control’s (OTC) point-of-sale ban had practically wiped out the legal tobacco trade.
“Criminals are costing our industry hundreds of millions every year and we are staring down the barrel of thousands of job losses throughout the country,” said Mr Hanley. “Sales have fallen dramatically since 1st July.”
The point-of-sale display ban came into force in July, with shop-owners caught flouting the law facing a fine of €3,000 or six months in prison.
The OTC, which maintained it was a pioneering move to prevent underage smoking, recently revealed 97 per cent of shops were complying with the law.
Revenue’s Customs Service recently revealed it has seized cigarettes with a retail value of about €30.5 million so far this year.
Retailers Against Smuggling (RAS) said cigarettes sales had fallen dramatically in recent months, with the black market fuelling job losses and costing the industry hundreds of millions of euro.
It maintained cigarette sales can be as high as 40 per cent of a retailer’s annual turnover.
William Hanley, RAS spokesman, said the Office of Tobacco Control’s (OTC) point-of-sale ban had practically wiped out the legal tobacco trade.
“Criminals are costing our industry hundreds of millions every year and we are staring down the barrel of thousands of job losses throughout the country,” said Mr Hanley. “Sales have fallen dramatically since 1st July.”
The point-of-sale display ban came into force in July, with shop-owners caught flouting the law facing a fine of €3,000 or six months in prison.
The OTC, which maintained it was a pioneering move to prevent underage smoking, recently revealed 97 per cent of shops were complying with the law.
Revenue’s Customs Service recently revealed it has seized cigarettes with a retail value of about €30.5 million so far this year.
Oct 22, 2009
Clerk cited in underaged tobacco sale
GENEVA – A gas station clerk was charged with selling tobacco to a person under age 18 as part of a compliance check of tobacco venders, police said.
Hina J. Patel, 38, of the 800 block of Bode Road, Elgin, was charged, Wednesday, Oct. 14, with making the sale at Geneva Shell, 1491 E. State St., police said. The compliance check occurred Oct. 7.
Police Cmdr. Julie Nash said the undercover compliance check was done at 12 establishments in the city that sell tobacco. Police rely on an underaged person whose ID shows he or she is underage to purchase tobacco. In Illinois, the legal age to buy tobacco is 18.
All but the clerk at Geneva Shell refused to sell, Nash said.
"We do this for the very obvious reasons of the dangers of smoking," Nash said. "And it's our attempt to help those who don't always make the best decisions for themselves, to keep them safe. And to make sure businesses are only selling tobacco to those old enough to make the appropriate decisions. It's about looking out for the kids."
The undercover compliance checks are similar to those done at liquor establishments to see if an underaged person will be served or sold to. But what is different is, the charge goes to the person who sold, not to the owner of the establishment. In the case of a liquor violation, the seller can be charged as well as the person who holds the liquor license.
"We are only citing the person who sold he cigarettes," Nash said. "We have never actually cited businesses before. I don't know why that is, but it definitely should be looked into."
According to police reports, the teen working with police asked to buy a pack of Newport cigarettes. Patel asked to see identification, examined it and then sold the pack of Newports for $7.02, to the undercover teen, according to the report.
Patel told police she miscalculated the birthday on the identification, according to the police report.
A spokesman for the gas station said Patel no longer works there. A message left for a manager was not returned Wednesday. Patel has an unlisted phone number and could not be reached for comment. She is to appear in court Nov. 17.
Hina J. Patel, 38, of the 800 block of Bode Road, Elgin, was charged, Wednesday, Oct. 14, with making the sale at Geneva Shell, 1491 E. State St., police said. The compliance check occurred Oct. 7.
Police Cmdr. Julie Nash said the undercover compliance check was done at 12 establishments in the city that sell tobacco. Police rely on an underaged person whose ID shows he or she is underage to purchase tobacco. In Illinois, the legal age to buy tobacco is 18.
All but the clerk at Geneva Shell refused to sell, Nash said.
"We do this for the very obvious reasons of the dangers of smoking," Nash said. "And it's our attempt to help those who don't always make the best decisions for themselves, to keep them safe. And to make sure businesses are only selling tobacco to those old enough to make the appropriate decisions. It's about looking out for the kids."
The undercover compliance checks are similar to those done at liquor establishments to see if an underaged person will be served or sold to. But what is different is, the charge goes to the person who sold, not to the owner of the establishment. In the case of a liquor violation, the seller can be charged as well as the person who holds the liquor license.
"We are only citing the person who sold he cigarettes," Nash said. "We have never actually cited businesses before. I don't know why that is, but it definitely should be looked into."
According to police reports, the teen working with police asked to buy a pack of Newport cigarettes. Patel asked to see identification, examined it and then sold the pack of Newports for $7.02, to the undercover teen, according to the report.
Patel told police she miscalculated the birthday on the identification, according to the police report.
A spokesman for the gas station said Patel no longer works there. A message left for a manager was not returned Wednesday. Patel has an unlisted phone number and could not be reached for comment. She is to appear in court Nov. 17.
Oct 13, 2009
Stop-Smoking Vaccine in the Works
MONDAY, Oct. 12 (HealthDay News) -- The National Institute on Drug Abuse has given a $10 million grant to a Maryland company to help it in the final phases of research regarding a possible anti-nicotine vaccine.
Nabi Biopharmaceuticals of Rockville will launch a phase III study of a potential vaccine called NicVAX. The study, which could be the last step of research if the vaccine works, represents the most advanced investigation of a smoking-cessation vaccine.
The vaccine is designed to help people quit smoking and not relapse. According to a statement by institute director Dr. Nora D. Volkow, the vaccine has received "fast track" designation from the U.S. Food and Drug Administration and has survived a successful "proof-of-concept" study.
There's no guarantee that the study will prove that the vaccine works, nor is it clear whether it will get federal approval if it does. But researchers are hopeful.
The vaccine works by making the immune system kick into action when it detects nicotine. The idea is that antibodies will bond to nicotine molecules and prevent them from entering the brain, where they give smokers the high that they crave.
Study results are preliminary so far, but they suggest that smokers who develop high levels of the antibodies in their bodies are most likely to quit for good. Researchers reported few side effects.
They expect that the vaccine will be effective for six to 12 months after it is given.
In the United States, tobacco use is linked to 400,000 deaths a year, according to background information.
Nabi Biopharmaceuticals of Rockville will launch a phase III study of a potential vaccine called NicVAX. The study, which could be the last step of research if the vaccine works, represents the most advanced investigation of a smoking-cessation vaccine.
The vaccine is designed to help people quit smoking and not relapse. According to a statement by institute director Dr. Nora D. Volkow, the vaccine has received "fast track" designation from the U.S. Food and Drug Administration and has survived a successful "proof-of-concept" study.
There's no guarantee that the study will prove that the vaccine works, nor is it clear whether it will get federal approval if it does. But researchers are hopeful.
The vaccine works by making the immune system kick into action when it detects nicotine. The idea is that antibodies will bond to nicotine molecules and prevent them from entering the brain, where they give smokers the high that they crave.
Study results are preliminary so far, but they suggest that smokers who develop high levels of the antibodies in their bodies are most likely to quit for good. Researchers reported few side effects.
They expect that the vaccine will be effective for six to 12 months after it is given.
In the United States, tobacco use is linked to 400,000 deaths a year, according to background information.
Aug 26, 2009
Tobacco Tax Gaining Legislative Support
The appetite to raise taxes seems to be growing as the Utah Legislature prepares for an anticipated $700 million budget shortfall. This is especially true for the tobacco tax proposed by Davis County Republican Representative Paul Ray.
“I do not support any type of tax increase normally, but again, this is a tax where the tobacco companies are making billions of dollars off of people — they’re killing people. You know, they’re using blood money, basically,” Ray says. “But yet, the state, this is the only way we have to recoup the money that we’re paying for health care for smokers and so to me it’s a legitimate way to do that.”
Ray’s proposal would nearly double the sales tax on a pack of cigarettes from 69.5 cents to $1.31. Then it would automatically re-set the tax at one cent above the national average, which Ray believes is fitting because Utah doesn’t have many smokers.
Ray says there was enough support to pass his tax increase earlier this year, but legislative leadership wanted to save it as an option for next year. There’s also talk of raising other taxes, including the gas tax and the income tax. But Senate President Michael Waddoups says the tobacco tax increase is the most likely to pass.
“I think there’s a number of revenue sources that need to be looked at,” Waddoups says. “The easy one is the tobacco tax that was discussed last year in my body. I wouldn’t say it was unanimous, but I think it is going to be the easiest one to pass.”
State leaders cut a billion dollars from the budget last year, but about 40 percent of that was restored by federal stimulus money. Without that federal assistance coming in next year, lawmakers might tap up to half of the state’s $420 million Rainy Day Fund.
“I do not support any type of tax increase normally, but again, this is a tax where the tobacco companies are making billions of dollars off of people — they’re killing people. You know, they’re using blood money, basically,” Ray says. “But yet, the state, this is the only way we have to recoup the money that we’re paying for health care for smokers and so to me it’s a legitimate way to do that.”
Ray’s proposal would nearly double the sales tax on a pack of cigarettes from 69.5 cents to $1.31. Then it would automatically re-set the tax at one cent above the national average, which Ray believes is fitting because Utah doesn’t have many smokers.
Ray says there was enough support to pass his tax increase earlier this year, but legislative leadership wanted to save it as an option for next year. There’s also talk of raising other taxes, including the gas tax and the income tax. But Senate President Michael Waddoups says the tobacco tax increase is the most likely to pass.
“I think there’s a number of revenue sources that need to be looked at,” Waddoups says. “The easy one is the tobacco tax that was discussed last year in my body. I wouldn’t say it was unanimous, but I think it is going to be the easiest one to pass.”
State leaders cut a billion dollars from the budget last year, but about 40 percent of that was restored by federal stimulus money. Without that federal assistance coming in next year, lawmakers might tap up to half of the state’s $420 million Rainy Day Fund.
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