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Action on Smoking and Health
A National Legal-Action Antismoking Organization Entirely Supported by Tax-Deductible Contributions
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MA Raises Cigarette Taxes [08/19-1]
Excerpts from: State action could hike cigarette prices
By Bruce Mohl Boston
Globe [08/19/03]
Massachusetts smokers could be facing price increases of as much as $1 a pack
under a state initiative to enforce the minimum pricing law on cigarettes by
halting special manufacturer discounts.
The state Revenue Department sent letters late last week to more than 6,000
Massachusetts retailers informing them that after Oc. 1 they will no longer
be able to use manufacturer discounts called ''buy-downs'' to reduce their retail
prices well below the current minimum prices of $5.41 to $5.49 a pack.
The state Revenue Department sent letters late last week to more than 6,000
Massachusetts retailers informing them that after Oct. 1 they will no longer
be able to use manufacturer discounts called ''buy-downs'' to reduce their retail
prices well below the current minimum prices of $5.41 to $5.49 a pack.
The price increase for the nation's best selling brand, Marlboro, may not be that large. Altria Group Inc., whose Philip Morris USA subsidiary owns the brand, said it revamped its discount structure over the past year to move away from buy-downs. A spokesman said the firm is offering buy-downs of just 15 cents a pack on its Marlboro and Basic cigarettes.
The state's current minimum retail price for premium cigarette brands is $5.41 at chain stores and $5.49 at nonchain stores. A different minimum is set for Kools -- $4.46 at chain stores and $4.59 at nonchain stores.
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