It is possible that the demand for cigars has gone down, simply because demand has gone down. Its a bit presumptuous to assume that decrease in demand is directly related to increase in taxes. Out here in Cali, our cigarette tax recently sky rocketed (it was a $1.50 increase, so I think its close to $3 a pack now), with name brand smokes costing between $5-6. From what I've seen, demand has not been directly affected yet, and I'm not sure it will be anytime soon; just my $.02.
In my state cigarette taxes went up dramatically in April (fed tax). I didn't notice any decrease in demand either. However, when I went to order cigs online from the Indian Res (where I had always bought them due to cheaper prices) their prices had also risen dramatically. Too high for me. I panicked.
I didn't want to quit smoking, but I could see these price hikes were never going to stop and it was only a matter of time before they were totally unaffordable.
I called the Dept. of Health (before I found out about ecigs) to ask if they had any
realistic help to quit, (they didn't, of course, except the gum, patches...) and I was put on hold. They apologized and said that they had been absolutely
swamped with smokers calling in a panic about the price increase and asking for free/low cost NRTs.
A dramatic increase in callers....
I later told a friend about it. He said he could afford cigs, for now, but he knew other smokers were panicked and cutting down---and very angry about being forced to.
So, just because we're still seeing people smoking and buying cigs, doesn't mean the tax increase
hasn't reduced demand.
I'm certainly not the only vaper to have quit analogs completely.
Just look at the very sharp increase in numbers on this forum.
A very rapid increase in the last few months.
And, obviously, the Gov, BT, etc. has noticed it too and are panicked about their lost tax revenue---hence their attack on e-cigs..........(until "they" have control of ecigs and tax them too).....
