The Global Institute for Novel Nicotine said on Feb. 19 that New York’s plan to apply its 75% wholesale tobacco tax to nicotine pouches would weaken harm reduction by narrowing the price gap between cigarettes and lower-risk smoke-free alternatives.
The proposal is part of Gov. Kathy Hochul’s Fiscal Year 2027 Executive Budget, which would newly tax tobacco-free nicotine pouches by folding “alternative nicotine products” into New York’s existing 75% wholesale tobacco excise tax. The measure was introduced as part of broader budget negotiations and is framed by the state as a way to close what officials describe as an untaxed loophole. Critics, however, say the change would treat lower-risk nicotine products the same as cigarettes and raise costs across the legal supply chain, according to Spectrum News.
The Global Institute for Novel Nicotine (GINN) says taxing nicotine pouches at rates similar to cigarettes could blur the distinction between products with different health risks. In a post, the group said FDA findings and broader toxicological evidence show significant differences in relative risk between combustible cigarettes and nicotine pouches. GINN argues removing that distinction could discourage some smokers from switching away from combustible cigarettes, which remain the most dangerous form of nicotine use.Â
GINN also said equalizing taxes on nicotine pouches and cigarettes could disproportionately affect lower-income and marginalized communities. The group said smoking rates are already higher among disadvantaged populations, making lower-cost alternatives particularly important. It also warned the policy could expand illicit trade, pointing to New York’s large smuggled-cigarette market as evidence that high taxes can push consumers toward unregulated products.
New York already has one of the largest illicit cigarette markets in the country. According to estimates from the Tax Foundation, net cigarette smuggling accounted for 53.2% of cigarette consumption in the state in 2022, the highest rate nationwide. Critics of the proposed pouch tax frequently cite those figures, arguing that steep excise tax increases can shift demand to untaxed or unregulated channels rather than consistently improving health outcomes or stabilizing legal tax revenue.
The Global Institute for Novel Nicotine describes itself as a membership-based association focused on alternative nicotine products, including nicotine pouches and other reduced-risk products. On its website, GINN says its mission is to advance collaborative standards, innovation, research, and advocacy while supporting safe, regulated, scientifically backed options for adults who would otherwise continue smoking combustible tobacco.
