Taxes

A bill introduced this week would take the state’s tax rate on premium cigars from zero to 65.03 percent of the wholesale price. This would take New Hampshire from the cheapest place to buy cigars in the U.S. to the fourth-most expensive.

Now the question is whether this will mean the prices of Cuban cigars will increase around the world due to Habanos S.A.’s “global pricing standard” that was introduced in 2022. Last year, the Cuban cigar monopoly said it wanted to create uniform pricing around the world, with the price of a cigar in Hong Kong designated as the standard price.

If passed, the tax would benefit any cigar with an MSRP of more than $2.85.

All tobacco tax rates in Singapore are increasing by 15 percent. The new tax rate for cigars will be SGD 42.7 per gram.

Illinois legislators will once again debate giving cigar smokers some tax relief.

The current text calls for cutting the tax on premium cigars from 20 percent to 10 percent. For most cigar smokers, this is probably a step backwards compared to the legislation that passed the Wyoming Senate last month.

Near-identical legislation was introduced in 2020 and did not pass.

Virginia could have one of the 10 lowest cigar tax rates in the country if H.B. 1417 passes.

The bill would cap taxes on “premium cigars” at no more than 30 cents per cigar. If passed, it would likely save consumers on purchases of any cigar that costs more than $3.

Indiana cigar smokers could be paying less for their stogies if the bill passes.

If passed, H.B. 1417 would not only return the cigar tax rate to 10 percent but it would also introduce a 30-cent per cigar tax cap.