Proposal That Would Have Increased Cigar Taxes Defeated

Proposal That Would Have Increased Cigar Taxes Defeated
Photo/Jeff Harris

A bill introduced last month that sought to dramatically increase the federal tax on premium cigars is moving forward, but without the tax.

Yesterday, the House Ways & Means Committee voted 24 to 15 to approve H.R. 4425, a measure that seeks to curtail the youth vaping epidemic by establishing the first e-cigarette tax. Additionally, the bill included language that amends the current tax rate to “$73.85 per pound and a proportionate tax at the like rate on all fractional parts of a pound but not less than 15 cents per cigar.”

This proposed new tax structure, according to some officials in the industry, would, at the very least, triple the tax rate on premium cigars. The language, however, was omitted from the bill as it was passed by the committee.

A similar version of the bill remains alive in the Senate. To help fight that tax hike, the Premium Cigar Association has created a portal on its website that streamlines the process for contacting elected officials.