More Tax on Tobacco

0 comment
8,105 views

To generate more federal money, the government ordered the increase of tobacco tax that will take effect on Wednesday. According to a study, the soaring price of cigarettes has dramatically dropped the sales of this commodity from the market, a welcoming development from public health advocates.

In a bid to help stop the increasing number of smokers in the world while generating profit, major tobacco distributors and cigarette manufacturers has increase the price of their products to offset major drops in their annual gross.

This develops as the government put a higher taxation on a pack of cigarette, which was reportedly 39 cents to $1.01.

President Barack Obama recently signed the tax increase order despite the country’s situation to finance major health insurance expansion. Majority of the beneficiaries will be children.

Similar tobacco products in the market, such as pipe cigars, will also be taxed accordingly. Other products, like the chewing tobacco, will have a tax increase of 19.5 cents to 50 cents per pound. The administration told that some $33 billion are expected to be raised in a period of four and a half years.

Meanwhile, smokers and other tobacco consumers are now asking the government to provide them other options amid the financial crisis and impending tax hike. However, the government said that it is only the begin of a long line of pending bills against tobacco, saying that the imposed tax increase was just the initial move in the growing clamor to eliminate smoking.

Meanwhile, the House of congress is now finalizing steps on how the Food and Drug Administration can regulate the distribution and use of tobacco.

<< Pepsi and Coca-Cola Report Weak Profit

Advertisement Revenue Slightly Increases on Internet >>

More Tax on Tobacco

Comment

Categories

Popular News