According to the U.S. Food & Drug Administration’s (FDA) own internal data—at least $115.6 million over the next 20 years and potentially as much as $300 million.
Last month, the FDA announced plans to regulate various tobacco products it currently does not oversee including cigars, e-cigarettes, pipes and hookah tobacco. As the agency laid out its plan, it also requested public feedback over whether or not it should specifically exempt premium cigars.
As part of financial estimations required to be calculated because of the new law the FDA estimated the costs of Option 1, regulation all cigars, and Option 2, regulating all but “premium cigars.”
The $115.6 million figure could balloon to over $300 million in the next two decades based on the agency’s own estimations, yet the economic impact is almost certainly significantly greater. As many as half the premium cigars currently on the market could be removed according to the agency itself, a much greater impact than $300 million over 20 years.
Earlier today we launched halfwheel.com/fda, a micro-site dedicated to the proposed deeming regulations that examines issues like this and more.