CALIFORNIA (Commodity Online): As the economic downturn persists, lawmakers are increasing tobacco product taxes. This is changing the tobacco market, says 7 Leaf Trading Post CEO Ric Gardiner, and Native American and all-natural cigarettes may be a big beneficiary.

All cigarettes are subject to Federal taxes, however, cigarettes produced on Native American territory are exempt from state and local taxes. Largely due to recent increases in taxes, cigarettes are approaching $100 per carton in some states. Native American produced cigarettes, on the other hand, cost significantly less than regular brands.

Taxes on tobacco are substantial. Federal excise taxes on cigarettes increased to a total of $1.01 last year; and taxes on cigars, pipe, and chewing tobacco also increased. State taxes can be even greater. New York state has among the highest tobacco tax rates in the nation, increasing taxes from $1.50 to $2.75 per pack last year, plus a 4% state sales tax. The current average price among all of the states is about $1.19 per pack.

Because the cigarettes it sells are produced on Native American territory, 7 Leaf Trading Post customers do not pay state or local taxes. And with current tough economic conditions, people are looking for alternatives such as these natural tobacco products.

Native American tobacco products may be getting more attractive because they are not subject to as many taxes. And they are more attractive to other people because many of these cigarettes are made without additives.

We believe that our increase in sales is largely the result of these increased taxes and the current economic slump, said Gardiner. Because we receive a lot of orders on the first of the month when many people get their payroll checks, we guess that people are struggling, and can't afford to buy cigarettes until they get paid.

A recent article in The Desert Sun (Palm Springs, CA) discussed the increasing sales of natural cigarettes at 7 Leaf Trading Post.

We think the continuing slow economy coupled with recent Federal and State tax increases, are changing tobacco buyers' habits, says Ric Gardiner, CEO. We think it is driving people to buy Native American cigarettes, and we expect this trend to continue.

7 Leaf Trading Post is one of the top sellers of Native American tobacco products in the US. The company offers the highest quality natural cigarettes using Native American tobacco. (PRWEB)