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Taxes on cigarettes increase in Delaware

Published on August 7th, 2007 18:08

Respecting new but already spread trend, Delaware increases taxes on cigarettes for additional 60 cents.

Being rich and lucky in memorable nicknames, as The Diamond State or Small Wonder, this state is not anymore lucky in getting cheap cigarettes, as it was before. Delaware is the 45th most populous state and the 7th most densely populated state with a population density of 320 more people per square mile than the national average. Imagine how many cigarette wholesales and respectively smokers who will feel fresh increase of 60 cents.

Rising of taxes is a common phenomenon, at least recently. There are states where taxes become higher more than for $1 during a month. Or it is an attempt to reduce the number of cigarette smokers or it is a new way of getting money, but boost of taxes is applied in almost all states of the USA.

The state Office of Management and Budgets director of Policy and External Affairs Robert Bert Scoglietti said what wholesalers need to make an inventory of their unsold cigarettes and cover the difference between the old and new taxes.

It consoles that Delawares taxes are lower than in other states such as Maryland, Pennsylvania and New Jersey.

Although, it worries cigarette dealers who think that this increase will result in lost of big part of out-of-state customers. They wouldn't come ever to Delaware, because savings on cigarettes wouldn't be enough to offset higher gas prices.

We know were still competitive, Scoglietti said. But we'll have to see what effect this has.