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US tobacco firms fight cigarette tax hike

Blocking California tax can deter anti-tobacco advocates from pursuing similar changes

Published Sun, Sep 11, 2016 · 09:50 PM

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    San Francisco

    REYNOLDS American Inc, Altria Group Inc and other tobacco companies are steering millions of dollars towards defeating a US$2 cigarette tax increase in California, a high-stakes effort and the third such fight in a decade in the most populous US state.

    The tobacco industry's outlay of US$35.6 million so far means that it has outspent supporters two-to-one in donations to defeat the measure, which starting next April would boost the levy to US$2.87 a pack. The initiative would generate some US$1 billion to US$1.4 billion in revenue in fiscal 2018 for cancer treatment and smoking prevention.

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