Governor Kathy Hochul has signed the state budget into law. It means that New York is expanding the 75 percent tax on wholesale tobacco products to include nicotine pouches. The tax also applies to alternative nicotine products, writes Nicotine Insider.
“The tax benefits public health”
Proponents of the policy argue that uniform taxation of all nicotine products helps to combat addiction while limiting young people's access to nicotine products. It is good for public health.
Philip Morris International, PMI, USA, on the other hand, believes that the tax is unreasonably high, and that the equivalent money could have been raised in ways that do not affect small businesses that sell nicotine products.
PMI further believes that the decision is bad for public health. “A high wholesale tax goes in the wrong direction when it comes to affordability and public health: it will raise costs and discourage adult smokers from switching to better alternatives, causing more people to continue smoking cigarettes, which carry the greatest health risks,” the company said.
The tax debate comes as nicotine pouches continue to grow rapidly across the United States.
White snus worth several billion
According to new research, the percentage of American adults who used nicotine pouches in the past 30 days increased from 2,3% in 2023 to 4,2% in 2024.
Worldwide statistics show that the global nicotine pouch market was worth US$6,9 billion in 2025. Worldwide sales are expected to reach US$42,48 billion by 2033.
Source: Nicotine insider: New-york governor signs nicotine pouch taxbill/
