New Jersey Proposes $51 Million Tax Hike on Tobacco and Vapes
Governor Phil Murphy has unveiled a new tax proposal that would significantly increase the cost of cigarettes and vaping products in New Jersey. The tax hikes, part of the state’s budget plan, are expected to generate $51 million in annual revenue.
Key Tax Increases Under the Proposal
- Cigarette Tax Hike: The per-pack tax would rise from $2.70 to $3.00, bringing in an estimated $41 million annually.
- Vape Liquid Tax Increase: The tax on nicotine-containing e-liquids would triple from $0.10 to $0.30 per milliliter.
- E-Liquid Container Tax: The state would also triple the container tax from 10% to 30%, adding $10 million in projected revenue.
Murphy’s administration justifies the tax hikes as a way to boost public health while also increasing state revenue. However, critics argue that the move disproportionately affects lower-income residents and could drive more consumers to cross-border or black-market purchases.
While some lawmakers support the tax increases as a discouragement strategy for nicotine use, opponents warn that excessive taxation may push consumers toward unregulated alternatives.
As New Jersey’s budget discussions continue, the debate over these tobacco and vape tax hikes is expected to intensify.
- Bringing Vapes into Singapore: A Guide to the Country’s Laws - March 26, 2025
- Saskatchewan, Canada to Tax Vaping Products from June 1, 2025 - March 26, 2025
- Sweden Smoke-Free – A Global Tobacco Harm Model - March 26, 2025
