Proactive Measures Needed on 2021 Tax Increase Bills
The COVID-19 pandemic has resulted in significant state revenue shortfalls and increased expenses. Since states are required to balance their budgets every year, state lawmakers will likely consider tobacco product tax increases as one option during 2021 legislative sessions.
If you have not already done so, NATO urges you to communicate with the state lawmakers that represent the district(s) in which your store(s) are located and urge them to not support cigarette and tobacco tax increases.
New FDA Graphic Cigarette Warnings
In March 2020, the FDA ruled that 11 new text warnings with graphic color images must appear on cigarette packs, cartons and cigarette advertisements beginning on June 18, 2021. Two lawsuits were filed claiming that the warnings violated free speech, exceeded the FDA’s authority and were improperly adopted. The original implementation date of Oct. 16, 2021, for the new warings has been extended by court order to Jan. 14, 2022.
Because of this postponement order, the FDA announced it strongly encourages manufacturers, wholesalers and retailers that create or produce their own cigarette advertising to submit their required warning rotational plans to the FDA by March 16, 2021, extending the original Dec. 16, 2020, deadline.
Both lawsuits continue, and whether the new graphic warnings will be struck down, become required in their current form, or be further delayed or amended may become known in 2021.
This story first appeared in the March/April 2021 issue of Tobacco Business magazine. Members of the tobacco industry are eligible for a complimentary subscription to our magazine. Click here for details.
– Contributed by Thomas Briant, Executive Director, National Association of Tobacco Outlets (NATO)
