If you do it right away, that would make a big difference. Wall Street analysts point out that cigarette prices and taxes are much higher in many other countries. Adjusted for inflation, the average price in this country is no higher than it was in 1992, before Philip Morris led the industry in slashing prices to recapture market share for such premium brands as Marlboro, which had lost ground to discount brands. Co. The Federal Trade Commission warned in a staff report this week that because of an antitrust exemption in the national settlement, tobacco companies could coordinate prices and raise them as much as double what would be needed to pay for the deal. If the price rise comes in the form of a tax increase, however, that could prevent the industry from turning it into profits.
Prices are averages.
Average Taxes as price percentage per pack of price. Smith Barney Up in Smoke. But if tobacco legislation passes, it would sharply boost the price of a pack.