Monday, August 19, 2013

Pembroke smoke shop Brennan's faces tax increase

With the price of taxes on cigarettes and other smoking products rising tremendously, local smoke shop Brennan’s faces unique problems.
“When dip (chewing tobacco) and snuff went up 200 percent, it doesn’t make sense anymore,” said Bill Nickerson, the manager of Brennan’s Smoke Shop in Pembroke. “We’ll probably stop selling it.”
The recent increase in state taxes has brought the tax on an average pack of 20 cigarettes to $3.51, a pack of 25 to $4.38, increased the tax on cigars and smoking tobacco by 40 percent and raised the tax of smokeless products like chewing tobacco by 210 percent.
Brennan’s is a small chain of smoke shops across the South Shore, going as south as Wareham, west as Raynham and north as Brockton. With the increase in taxes, Nickerson said the Pembroke location would most likely see some changes.
“Our profit margin isn’t as high as it was before,” he said. Glamour cigarettes.
He said that although other locations are charging up to $10 for a pack of cigarettes now, Brennan’s has kept the price at $8.50. The hope is that the lower prices will bring in more customers, which will help offset the lower profit margin.
The state news service reported that the House and Senate voted Wednesday, July 24 to override Gov. Deval Patrick's veto of legislation raising taxes by $500 million to invest in transportation and other areas of the state budget.
The House voted 123-33 and the Senate 35-5 to override the governor’s veto with two-thirds majorities in both branches. The tax increases went into effect the first week of August.
The bill raised the gas tax by 3 cents a gallon, tacked $1 onto the per-pack cigarette tax and applies the sales tax to certain software and computer system design services.
Patrick vetoed the bill because he was looking for a more robust tax package.
Tabitha Blake, a tobacconist at the store, said Brennan’s is lucky because it has many regular customers. She said many customers are actively making the transition away from cigarettes to electronic cigarettes or other less expensive alternatives.
“A lot of customers are ready for alternatives,” she said. “They aren’t ready to just quit because prices went up.”
Kelly Larsen, a Pembroke resident and a regular at the smoke shop, is a prime example of the new customer that is frequenting the store. The only difference is that she had already made the transition before the tax increase.

1 comment:

  1. Are you paying more than $5 for each pack of cigs? I'm buying my cigs at Duty Free Depot and I save over 60% from cigarettes.

    ReplyDelete