HONOLULU -- The largest federal tobacco tax hike in history takes effect Wednesday, pushing the federal tax on a pack of cigarettes to $1.01.

Health advocates hope a tax increase in the middle of a recession will help persuade smokers to quit. But many smokers said it won't stop them from smoking.

At Tanabe Market on Keeaumoku Street packs of Kool or Marlboro cigarettes already cost $6.55. When the federal cigarette tax hike of 62 cents per pack goes into effect the pack will cost $7.17.

Smoker Greg Stearns lit up while on a break from his job in Kakaako. He said he's been smoking for 10 years and won't stop just because the prices are going up.

"That's a little bit more than we need to be spending on cigarettes. They're already taxing us plenty taxes. So you're taxing a tax on a tax," Stearns said.

Stearns said he is upset because smokers already pay $2 a pack in Hawaii state taxes and the state cigarette taxes would double to $4 a pack in July under a proposal working its way through the legislature.

Other smokers agree the federal tax hike won't stop them.

"I don't think it'll be a deterrent. I think I can come up with the 62 cents," smoker John Ramsey said.

Cigarette retailers like one Minimart said smokers won't see the higher prices right away because they're still selling their existing stock, which they bought at a lower price.

The federal tax hike applies to all kinds of tobacco products. Cigars will cost 40 cents more starting Wednesday. That's why the owner of Cigar-Cigar on King Street has stockpiled boxes and boxes of cigars, roughly three to six months worth of inventory.

"I bought extra cigars anticipating what the price might increase to and like to pass the savings on to my customers," Hilton said.

Hilton said a proposal to more than double state taxes on cigars could drive him out of business, forcing his customers to order cigars through mainland catalogs and Web sites.