Excise Taxes

National

Indiana cigarettes tax increases by 44 cents to help cover the uninsured
A new health insurance plan for the working poor, funded by a 44-cent increase in the cigarette tax, was approved April 30, 2007 by the Indiana state legislature. The House voted to pass the plan 70-29, with the Senate voting 37-13 minutes later to do the same, sending the bill to the governor to be signed into law. Governor Mitch Daniels is in favor of the legislation. Under House Bill 1678, the cigarette tax would rise to 99.5 cents per pack, somewhat below the nationwide average of $1.12 per pack.  Click here to read more.

South Carolina House approves cigarette tax bump
On April 25 the House voted 78-37 on a tax swap plan that would raise cigarette taxes to 37 cents per pack and cut the sales tax on groceries to 1.4 cents on the dollar. The swap was approved Wednesday over the protests of Democrats and the bill's GOP sponsor, Rex Rice, who wanted the money go provide health insurance to 60,000 to 70,000 more low-income children and adults. Click here for the press release.

Tennessee House panel restores Bredesen’s cigarette tax proposal
The Tennessee House voted to restore a proposal to increase the state’s cigarette tax by 40 cents per pack and direct most of the projected proceeds toward education. The proposal was originally passed by the House Agriculture Committee, and then amended by the budget subcommittee to 20 cents per pack. The subcommittee will now wait a week to get a revised estimate of the fiscal impact of the bill before voting whether to advance the measure. Tennessee’s current cigarette tax of 20 cents per pack is among the lowest in the country. Click here to read more.

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International

Sin tax on smokers up $5 per carton in Alberta
The Alberta government has increased cigarette taxes by $5 a carton, or about 70 cents a pack, as part of its new budget. The increase will put another $90 million into general government revenues each year and dissuade some young people from taking up the habit. The move it part of Health Minister Dave Hancock’s push to ban cigarette sales in pharmacies, get rid of cigarette displays from stores, and change Alberta’s reputation as Canada’s most smoking-friendly province. Click here for the press release.

Row rumbles over hookah tax break
The Delhi government has decided to withdraw the 12.5 percent Value Added Tax (VAT) on hookah tobacco, although doctors say smoking a hookah is as harmful as smoking cigarettes or chewing gutka. The decision was made after a group of people from Delhi villages met with the Finance Minister and argued that smoking hookahs was part of the traditional culture of villages and hence should not be taxed. The Delhi government had imposed VAT on all tobacco products, except bidis, starting April 1. Click here to read more.

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