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Tax increase proposed to target smokeless products

March 1, 2012
The Maui Weekly

CBS News - State lawmakers are aiming to curb a loophole in a Hawai'i tax that does not apply to smokeless products and "little cigars."

Products that are also exempt from the current tax are chewing tobacco, snuff and tobacco sticks and pellets.

State Sen. David Ige, chairman of the Senate Ways and Means Committee, said a new bill slated to go before the Senate could change all that. The proposal would raise the excise tax on all tobacco products to 70 percent, or $3.20 each. It would also affect the cost of 'roll your own' tobacco.

Health Department statistics indicate that price increases serve to decrease consumption.



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