AUGUSTA – Jim Tudor, president of the Georgia Association of Convenience Stores (GACS), penned an op-ed earlier this week in the Augusta Chronicle, warning of the impact that higher cigarette taxes will play on convenience store retailers.

“I am keenly aware of the struggles that have faced businesses in our state since the onset of the recession,” Tudor said, noting that convenience stores in the Peach State have created more than 2,000 jobs between 2010 and 2012. “[W]e need to ensure that there are no legislative or regulatory obstacles that could jeopardize continued job creation.”

That’s why Tudor opposes a proposed 94-cent increase in the federal cigarette tax, which will help fund a program that expands access to early education.

“We are highly supportive of state and federal measures that seek to improve education, but they should not be implemented at the expense of jobs and economic activity,” Tudor said. “Choosing to fund the program with a tobacco tax increase could have negative implications for GACS members and conveniences stores across the nation.”

Tudor said an increase in the federal excise tax on tobacco products could cause an increase in black market activity, impacting retailers both in lost tobacco sales as well as sales of incidentals that accompany such purchases. “Cigarette tax increases could benefit illegal and counterfeit cigarette sellers while harming law-abiding retailers such as the ones GACS represents.”

Tudor said his members are justifiably concerned, too, citing the 2009 federal cigarette tax increase after which tax-paid sales of cigarettes dropped by more than 8%.

“Convenience stores, like most retailers of consumer goods, sell products at very low margins. They are heavily dependent on sales volume to maintain their businesses and employment levels. As previously explained, a cigarette tax increase could diminish sales in multiple convenience store product categories. This decrease in revenue could cause convenience stores to cut employee hours or even lay them off,” Tudor said.

“I encourage members of Congress, the Georgia delegation in particular, to work with President Obama to find a better way to fund this well-intentioned program — one that will not undo the hard-fought economic progress we have made.”