Government Raises Sin Tax Over 2259 Percent on Bulk Tobacco

Bad times for “roll your own crowd” and small cigar smokers.

On April 1, new Federal Excise taxes will once again raise the price of cigarettes, cigars, snuff, bulk tobacco and other tobacco related products. While the price of a pack of small cigarettes will increase 258 percent, few are aware of the over 2200 percent rise in taxes on bulk tobacco, the type of tobacco bought by consumers who want to save money and roll their own cigarettes, or the phenomenal tax increase levied on small cigars.

According to the Alcohol and Tobacco Tax and Trade Bureau, the tax on “small” cigarettes will go from 39 cents per pack to $1.0066 per pack, an increase of 258%. Excise taxes on cartons of large cigarettes will go from $3.90 per carton to $10.066 per carton, an increase of 258%.

While an increase of 258% seems quite amazing, the Big Kahuna of federal excise tax increases for tobacco products were taxes on small cigars and bulk tobacco, the type of tobacco used by the “roll your own” crowd.

Small cigars, which were taxed at $1.828 per 1,000, will rise to $50.33 per 1,000, or 5 cents per cigar, a $1.00 per pack, an increase of over 2700%. Bulk tobacco taxes will rise from $1.0969 per pound to $24.78 per pound, a whopping 2259%.

To put this into perspective, the current federal excise tax on a 12 oz. can of beer is 5 cents. An increase of 2700% would be additional $1.35 tacked on to the price of the beer.

These types of taxes are referred to as “sin taxes” and are levied on such products as booze, tobacco, and activities such as gambling. The term, sin tax, usually refers to state excise taxes or levies and not the federal government.

By LBG

Image – 1909 Photo of Rolling cigarettes

Tags: 2200 percent, alcohol, excise taxes, Federal government, sin tax, tobacco