They can't because under the terms of the Master Settlement agreement, the payments for which are based on sales volume, the manufacturers are required to continue to sell their product in the 46 states which signed the agreement, and that includes NY.
When sales of cigarettes plummet in New York City, and the MSA payments to the state start dropping I can see the folks in Albany teling Mayor Bloominidiot to ditch the increase.
Ah, but the tobacco companies don't PAY the taxes...their customers do. They sold us out with their agreement to pass on all these excessive, oppressive, regressive, punitive taxes to the little guy while protecting their markets and actually trying to create a monopoly. So I don't ever mind trashing the industry just like they trashed us. SMOKE CHEAP--it's your civic duty! Make your own for around $8/ctn!