Illinois tax hike on tobacco and vape products set to take effect July 1

CBS News

4 days ago

Some worry tax hike on vapes, other nicotine products in Illinois will keep people smoking
Some worry tax hike on vapes, other nicotine products in Illinois will keep people smoking
Some worry tax hike on vapes, other nicotine products in Illinois will keep people smoking
Starting next week, it will cost people in Illinois a little more to feed their nicotine habit — whether they feed that habit through cigarettes or other means.
Taxes on vapes, nicotine pouches, and other tobacco products will increase in Illinois July 1.
Right now, it is not exactly clear how the tax will be passed onto the consumer. But vaping products and popular Zyn pouches will now be subject to a 45% tax — up from 15%.
Nicotine pouches like Zyn are seen by some as a safer alternative to cigarettes. But while they run about $8 per tin at a Chicago Loop convenience store now, the new tax could make that figure jump effective July 1.
"It's also going to generate $29.7 million worth of revenue for the State of Illinois," said Illinois state Sen. Javier Loera Cervantes (D-Chicago).
Cervantes, a former cigarette smoker himself, sponsored the bill to raise taxes on everything from cigars and chewing tobacco to vapes and nicotine pouches to 45% — which is in line with cigarettes. Cigarette taxes in Illinois are going up too, by $1 per pack.
"Nicotine is still negatively affecting the health of our residents," said Cervantes. "We're trying to hopefully get people away from tobacco products."
But Dr. Brian Erkkila, director of regulatory science for Swedish Match, North America — the company that manufactures Zyn — said he is afraid the tax could have the opposite effect.
"We're just worried this tax increase could keep people smoking," Erkkila said. "When you raise the price of these smoke-free options, these better alternatives, it's harder for them to get those — and they may just stick with their cigarettes."
After a steady decline in cigarette smokers in America, tobacco giant Phillip Morris International bought the company that makes the extremely popular Zyn pouches.
"There's a history of tobacco companies misleading the public about the health harms of their products," said Kristina Hamilton, Illinois advocacy director of the American Lung Association.
Hamilton said there are seven FDA-approved products to help smokers quit, and nicotine pouches are not one of them.
"There is no evidence that these newer smokeless products have had that impact of helping people overcome their addiction to tobacco products," said Hamilton. "These products still contain harmful chemicals."
The Illinois Fuel & Retail Association, which represents gas stations in Illinois, is concerned that the vape, pouch, and tobacco tax could send some potential customers across state lines.