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.
Not to MENTION that smokers pay into the MSA %100!!!!!