Vt. cigarette tax heading up

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Cigarette taxes in Vermont appear to be on the rise, but it’s unclear how much.

Lawmakers would tag 25 cents a pack onto the $1.99 the state already charges. Governor Jim Douglas is pushing for a 45-cents-per pack increase.

The difference could be settled in a special legislative session on the budget next week.

The state tax increase would come on top of a 62-cents-per tax increase in the federal cigarette tax that went into effect earlier this year.

House Speaker Shap Smith is among those who worry that cigarette taxes are not a stable revenue source, because increasing them tends to drive down the number of smokers.

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