Tax advocates said the increase, approved Monday, leaves Fairbanks below Alaska's average local tobacco tax rate of 39%.
The Fairbanks City Council voted this week to increase the city’s tobacco excise tax from 8% to 20%, after a discussion about effects on public health and local businesses.
“Increasing the tax on tobacco is a proven method to protect youth from these deadly products,” Morgan said. “Teenagers are especially price-sensitive, so a higher tax will stop many young people from becoming addicted in the first place, and from developing life-threatening diseases like heart disease, lung cancer, stroke and other chronic diseases.”
McDonald said vaping helps people quit smoking, and increasing the tax would result in some former smokers going back to cigarettes. “ could unintentionally foster the growth of illegal markets where underage sales go unchecked, and the government again receives no revenue,” Rios said.
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