As sessions around the country wind down before summer recess, there are many states that have a proposed tobacco tax increase that would affect cigars. This week one of those states passed a new budget that had originally called for a tobacco tax increase on OTP items.
In Baton Rouge, Louisiana that proposal would have raised premium cigar taxes an additional 5% (from 20%) as well as raising pipe tobacco 17%. The Cigar Authority can report that the budget will not contain any increase in taxes to Premium Cigars and Pipe tobacco.
IPCPR issued the following statement, “This week, your representatives at IPCPR have been meeting with legislators in Baton Rouge with many of our industry partners to prevent a 5% tax increase on premium cigars and a 17% tax increase on pipe tobacco. We are pleased to report that due to our efforts an other tobacco products (OTP) tax increase has not been included in the budget plan for the 2015-2016 fiscal year. Thank you to all IPCPR members who contacted the Legislature regarding this misguided legislation. Your participation was critical to our success.“
