A proposal to increase tobacco taxes in New Mexico is moving forward after being narrowed to specifically target vape devices and nicotine pouches.

On Tuesday, the Senate Tax, Business and Transportation Committee voted 4-3 to advance Senate Bill 20, which would broaden the definition of nicotine products and raise taxes on e-cigarettes and similar alternatives.

Sen. Martin Hickey, a retired physician and the bill’s sponsor, estimated the measure could generate between $5 million and $10 million annually if enacted. The bill now moves to the full Senate for further consideration.

In its initial form, the bill would have also increased the state’s cigarette tax rate from $2 to $3 per pack, among other changes. But that provision was removed from the legislation amid pressure from lobbyists representing large tobacco companies, Hickey said.

Several lobbyists and business owners still testified against the legislation on Tuesday, with one claiming youth e-cigarette usage in New Mexico has declined in recent years, media reports.

Dan Coffman, the vice president of Gem State Distributors, a wholesaler of candy and tobacco products with an office in Albuquerque, said the bill would have “devastating consequences” on local convenience stores.

He also predicted the legislation, if approved, could lead to increased sales of tobacco products in border towns just outside New Mexico.