Excise Taxes

National

No butts about it: Cigarette tax appears likely (NH)
A 25-cent excise tax increase on cigarettes is likely to go into effect on October 1, unless New Hampshire smokers and retailers raise cigarette sales to reach a total of $50 million in tax revenue. Since July 1, $33.1 million in cigarette tax revenue has been generated, leaving a nearly $18 million revenue gap to fill by the end of September. If the tax increase takes effect, the state cigarette tax will total $1.33 per pack, which would still be lower than the tax in neighboring states like Massachusetts. With the summer tourism season ending, stores in New Hampshire will likely face slowing tobacco sales that will usher in the tax hike. Click here to find out more.

Jump to $2 a pack would raise $50M for health programs (UT)
Fifteen health organizations are proposing a tax increase that would raise Utah’s cigarette tax to $2 per pack. By raising the tax from the current rate of 69.5 cents, the state’s cigarette tax would become the sixth highest in the country. The tax increase would bring in $48.7 million in state revenues, which would pay for healthcare expenses, smoking cessation programs, and healthcare reforms. Although Utah’s smoking rate is the lowest in the country, smoking prevalence has increased over the last year, sparking health advocates to introduce this tax increase as a measure to encourage smokers to quit. Click here for more information.

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International

Minister of National Revenue unveils a new state-of-the-art excise stamp to combat contraband tobacco (Canada)
Canada’s Minister of National Revenue recently unveiled a new tobacco excise tax stamp that will be an important part of the nation’s plan to combat tobacco smuggling. Canadian leaders recognize that cigarette smuggling has not only robbed their country’s economy through tax evasion, but other illegal activities are often associated with contraband cigarettes. The design of the new excise stamp employs both overt and covert strategies to assist authorities in identifying counterfeit products. The new stamp is expected to be in use by 2010. In addition to the technology upgrades to the tax stamps, authorities will increase audits of tobacco manufacturers and build relationships with tobacco growers to improve monitoring. Read more here. Related:  The Canadian government recently announced plans to invest $20 million to prevent tobacco counterfeiting over the next four years. Not only will the plan target tobacco smuggling, but it also aims to decrease overall tobacco use in Canada. Click here to read more.

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