Nicotine pouches like Zyn could soon face a 75% wholesale tax under Gov. Kathy Hochul’s proposed budget, according to WETM. Her FY 2027 Executive Budget would redefine tobacco products to include nicotine, sweeping pouches into the state’s existing tax structure.
State officials say the move would curb youth use and help fund health care costs tied to smoking. Industry representatives argue the tax would push pouch prices closer to cigarettes and hurt efforts to shift smokers to alternatives.
Public health data show tobacco-related illnesses cost New York about $12 billion a year. Lawmakers will review the proposal as budget negotiations move forward.
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