June 13, 2025

Rhode Island House of Representatives  
82 Smith Street
Providence, Rhode Island 02903

Dear Representative,

On behalf of the 739 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in Rhode Island, I urge you to reject any proposal that would include a new wholesale tax on oral nicotine pouches in H. 5076.  The proposed 80 percent tax would undermine public health by discouraging the use of less harmful alternatives to combustible tobacco.

The Food and Drug Administration (FDA) has recognized the importance of tobacco harm reduction.  In October 2023, the FDA approved a Premarket Tobacco Application (PMTA) for nicotine pouch products, calling their sale “appropriate for the protection of public health.”  To receive a PMTA, applicants must undergo an extensive, multi-year scientific review including multiple rounds of both laboratory toxicological testing and controlled patient trials to meet the highest standard of evidence that the product improves overall public health compared to alternatives already on the market.

Smoke-free nicotine pouches, which contain no tobacco, offer adult smokers a substantially less harmful alternative to cigarettes.  Imposing an 80 percent wholesale tax would not only make these products unaffordable for many adult smokers seeking to quit combustible tobacco but also send the misleading message that all nicotine products are equally dangerous, contrary to overwhelming evidence.  Countries like Sweden, where adult smokers have widely adopted tobacco alternatives like nicotine pouches, have seen historic reductions in smoking rates and smoking-related diseases.  

Overly burdensome taxes on reduced-risk products like nicotine pouches do not eliminate demand.  They simply shift where that demand is satisfied.  Consumers in states that have implemented punitive tobacco taxes often turn to neighboring states or to unregulated black markets to find lower prices.  An unprecedented 80 percent tax on nicotine pouches in Rhode Island would create a powerful financial incentive for residents to purchase from vendors in Massachusetts or Connecticut, taking potential tax revenue with them. 

Rather than raising taxes on nicotine pouches, the legislation should tax reduced-risk nicotine alternatives at rates lower than combustible tobacco, which would keep sales and tax revenues within the state, support legitimate businesses, and ensure that adult users have continued access to alternative products to help them quit smoking.  Rhode Island should support, not punish, innovative harm reduction strategies that can save lives.

For the above reasons, I ask you to reject any new wholesale tax on nicotine pouches in H. 5076. 

Sincerely,
Tom Schatz
President, CCAGW