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Cigarette tax hike bad for bodegas

New Yorkers who smoke are digging a little deeper into their pockets to light up and it’s affecting some local bodega owners.

New York City now has the highest cigarette taxes in the country, after the New York State Legislature approved a $1.60 per pack tax increase that began on July 1, as part of an emergency budget measure to keep the government running. But some community activists said the state made it hard for bodega owners to earn a living.

“We hope it is not going to lead to bodegas closing in the city,” said Fernando Mateo, president of Hispanics Across America. “I think it was a miscalculated decision.”

The average price for cigarettes in the city is nearly $11 a pack, with the $1.50 in city tax, $4.35 in state tax and $1.01 in federal tax included. Santo Driando, the owner of the bodega Candy and Grocery Store Inc. in Corona, said in order for him to make a profit, he would need to sell a pack of cigarettes for at least $13. Right now, he is selling for $12 a pack.

“We were hardly making it before,” Driando said. “Right now we don’t know how we going to make it. I don’t think we would be able to continue selling cigarettes anymore.”

Apolenar Canela, a worker at the bodega named 35th Avenue Grocery Inc. in Corona, said he used to order up to eight cartons of cigarettes a week. Now he only purchases four because people were not buying as many cigarettes since the most popular cigarette brand, Newport, went up to $12 per pack from $10.

“We have been selling fewer cigarettes,” said Canela, who has been working in the bodega for almost two years. “People come and they don’t want to pay $12 a pack for cigarettes.”

Tax increases have played an important role in the battle against tobacco addiction, according to the NYC Health Department. NYC has more than 300,000 fewer adult smokers today than in 2002 due in part to price increases. The $1.60 tax increase will push the cost of cigarettes to more than $300 a month and $4,000 a year for people smoking a pack a day.

“Now is the time to quit,” said New York City Health Commissioner Dr. Thomas Farley. “Smoking is hurting your health and your wallet. For the many New Yorkers looking to save money, this is a great way to do it.”

State Senator Jose Peralta said the tax hike might stop younger people from smoking, but not the older people who are addicted to cigarettes. He said he doesn’t think bodega owners will be affected by it because people will keep buying cigarettes.

“I think they will see the regular customers come back and not newer ones,” Peralta said.

For help quitting call 3-1-1.