New Bill Seeks to Dramatically Increase Federal Taxes on Tobacco Products


Here’s how the tax parity, as defined by Section 5701(g) of the Internal Revenue Code of 1986, could change for each product category:

  • Small Cigarettes: From $50.33 to $100.66
  • Large Cigarettes: From $105.69 to $211.38
  • Roll-Your-Own Tobacco: From $24.78, amended to $49.56
  • Pipe Tobacco Tobacco: From $2.8311 cents to $49.56
  • Smokeless Tobacco: In paragraph (1) of Section 5701(e), from $1.51 to $26.84; paragraph (2), from $50.33 cents to $10.74
  • Small Cigars: From $50.33 to $100.66
  • Large Cigars: From 52.75 percent to $49.56 per pound and a proportionate tax at the like rate on all fractional parts of a pound but not less than 10.066 cents per cigar

The Premium Cigar Association (PCA) issued the following call-to-action:

“Senator Durbin (D-IL) has reintroduced a massive tobacco tax increase as part of a bill that is otherwise intended to address maternal mortality. Buried within S. 411, the Mothers and Offspring Mortality and Morbidity Awareness Act (MOMMA’s Act), are changes to the tax code that would treat the entire tobacco industry as cigarettes. The result is an estimated 500 percent – 1000 percent increase on the tax for premium cigars (depending on size) and a 1650% increase on the tax for pipe tobacco!

“A tax this big isn’t just lost profit.This bill will raise the costs for manufacturers, retailers, and consumers. Jobs, businesses, and ability to buy and enjoy a premium cigar will be at risk. Take action now by letting your U.S. Senators know that S.411 (MOMMA’s Act) shouldn’t be paid for on the back of a single industry!”

According to, S. 411 has been read twice and referred to the Committee on Finance. Previous to its latest introduction, this bill has been introduced in two previous sessions of Congress. Rep. Robin Kelly (D-IL) plans to introduce a companion bill in the U.S. House of Representatives.

You can read the bill in its entirety by clicking here. You can contact your U.S. Senator and voice your opposition to this bill by filling out the form here.

For all the latest legislation and FDA news impacting the tobacco industry, click here.