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CHARLOTTE – A nationwide cigarette tax increase has gone into effect this week, leaving consumers to pay 62 cents more per pack in the largest tobacco tax increase in U.S. history.

Leaders say the profits from the increase will help expand the State Children’s Health Insurance Program, which allows children who don’t have health coverage to get medical care when they need it.

North Carolina smokers may face further increases after lawmakers consider an additional price increase at the state level. Last week, Gov. Bev Perdue proposed an increase of at least $1 on a pack of cigarettes. The governor says the money generated would go to getting rid of the state’s debt.

If Perdue’s proposal is approved, it would make North Carolina’s tax the 20th highest in the nation -- up from 45th now. If approved, the average cost per pack in North Carolina would increase to about $5.50 on Sept. 1.

Meanwhile, North Carolina could also be a step closer to going smoke free. Wednesday, the state House is scheduled to vote on a bill outlawing smoking in restaurants, bars and most workplaces. A similar effort narrowly failed two years ago.

If approved, North Carolina would become the 35th state to ban public smoking.