The U.S. Food and Drug Administration (FDA) has announced that there will be an increase in the user fees for the 2018 fiscal year, which begins on Oct. 1, 2017. For those unaware, the FDA uses user fees to help pay for the Center for Tobacco Products (CTP)’s regulation of tobacco products. Cigarette products have been paying this fee but with the deeming regulations introduced in 2016, premium cigars, pipe tobacco, snuff, chewing tobacco and roll-your-own products will also pay user fees.
In 2018, the CTP plans to collect $672 in user fees. This is up from the $635 goal from 2017. It already has announced that the goal for 2019 will be $712 million. Each category of regulated tobacco product has a target amount of user fees where these totals will come from. For example, cigars will rake in $563,734,232 dollars in user fees and cigarettes a whopping $5,019,672,177.
Here is a full breakdown of Tobacco User Fee Assessment Formulation broken down by product class from the FDA: