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Coupled with the 62-cent-a-pack increase in the federal cigarette tax that took effect April 1, cigarette prices in the state have shot up $1.62 a pack in three months

Figure 3 CDTFA Bases Its Calculation of the Tax Rate for Other Tobacco Products on the Wholesale Cost of Cigarettes Source: CDTFAs fiscal year 201819 other tobacco products tax rate calculation

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Although Lorillards traditional cigarette sales have increased as well, company CEO Murray Kessler still sees the tobacco industry as one thats declining