The head of external affairs for the Consumer Choice Center (CCC) said Gov. Kathy Hochul’s (D-NY) proposed tax increase on nicotine pouches could lead New York consumers to purchase these products on the “illicit market” or in other states.
“Much like vapes, nicotine pouches have been unfairly vilified,” said Elizabeth Hayes in a press release. “Studies show that, if smokers had the opportunity to switch to nicotine pouches back in 2000, there would be 700,000 fewer deaths from tobacco-related diseases by 2050. Unfortunately, policymakers in many states fail to recognize that pouches are a valid harm-reduction substitute for traditional combustible tobacco products, and New York could be trending in the wrong direction.”
“While a 75 percent excise tax on oral nicotine pouches may increase revenue in the short term, we believe that any boost in revenue will be undermined by consumers moving to purchase these products in the illicit market or out of state, or offset by the increase in government expenditures regarding smoking-related illnesses,” Hayes said.
The governor’s latest budget proposed applying the state’s existing tobacco tax framework to nicotine pouches, including a 75% excise tax similar to the levy on other non-cigarette tobacco products.
The CCC released its first Nicotine Pouch Accessibility Index and said that Hochul’s proposed tax increase could lower New York’s score on the new index, where the state currently earns a “B.”
The center described the tax hike as a budget “low-hanging fruit” and said it could reduce access to lower-risk alternatives, potentially discouraging smokers from switching from cigarettes.
Hayes also said the tax increase could increase government costs tied to smoking-related illnesses if it makes quitting cigarettes or switching to lower-risk products less appealing.
The Consumer Choice Center describes itself as an independent, non-partisan consumer advocacy group focused on “freedom of choice, innovation, and abundance,” using research and public outreach to influence policy debates.
