Taxation and Product Pricing


Higher commercial tobacco product prices encourage current users to quit and sustain cessation, help prevent youth initiation, and reduce consumption among those who continue to use tobacco. Tobacco manufacturers work against this by marketing with coupons and other incentives to drive down prices. Many states have used their broad legal authority to raise excise taxes on cigarettes and other tobacco products, and to regulate price-related marketing strategies to maintain or raise higher prices on all tobacco products.