Delaware lawmakers advanced legislation to significantly increase tobacco taxes and update licensing requirements, with House Bill 215 proposing to raise the cigarette tax from $2.10 to $3.60 per pack while also increasing taxes on vapor products, moist snuff, and other nicotine items. The measure would expand the definition of tobacco to include all nicotine-containing products, raise licensing fees across the supply chain, and is projected to generate up to $26.7 million annually, with implementation beginning in late 2026.
Tag: tax
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Iowa Senate Passes 5-Cent Tax on Vapes, Nicotine Products
The Iowa Senate has passed a bill establishing a new excise tax on alternative nicotine products, introducing a 5-cent per-unit tax on nicotine pouches and a 5-cent per milliliter tax on e-liquid used in vape products. The tax applies to both disposable vapes and refill cartridges, creating a standardized levy across emerging nicotine categories that have historically gone untaxed in the state.
Lawmakers said the extra revenue would go toward pediatric cancer research. “I understand that the level of tax we’re looking at here is not likely to be enough to deter usage, but it is enough to create this investment in pediatric cancer research that we all want to get behind,” Sen. Kara Warme (R-Ames) said.
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Advocates Call to Merge Bangladesh’s Multi-Tier Cig Structure
At a workshop hosted by the National Heart Foundation of Bangladesh today (April 9), journalists and public health advocates called for setting the minimum retail price of a 10-stick cigarette pack at Tk100 ($0.82) in the FY2026–27 budget by merging the low and medium tax tiers and introducing a uniform Tk4 (3 cents) specific tax per pack.
A keynote by Dr. Shafiun Nahin Shimul of the University of Dhaka said Bangladesh’s 35.3% tobacco use prevalence leads to nearly 200,000 premature deaths annually and an economic cost of Tk870 billion ($7.1 billion), more than double sector revenue. Speakers, including representatives from the National Tobacco Control Cell and health researchers, argued the current multi-tier tax structure enables down-trading to cheaper brands and said higher prices could reduce youth initiation, encourage cessation, and raise government revenue.
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Weak Illicit Cigarette Enforcement Drains $1.1B in Pakistan
Pakistan is losing more than Rs300 billion ($1.1 billion) each year to the illegal cigarette trade due to weak enforcement against illicit manufacturing and smuggling, according to macroeconomic analyst Osama Siddiqui. He said effective action in the tobacco sector could significantly reduce the country’s widening revenue gap.
The shortfall comes as fiscal pressures mount. The Federal Board of Revenue missed its March target by Rs185 billion ($666 million), collecting Rs1,182 billion ($4.3 billion) against a goal of Rs1,367 billion ($4.9 billion) — just a 6% year-on-year increase versus the 21% growth required. Meanwhile, the government is trimming development spending to fund fuel relief, while facing pressure from the International Monetary Fund to withdraw tax exemptions.
Siddiqui argued that instead of raising taxes on already compliant sectors, authorities should prioritize curbing tax evasion in tobacco through stricter action against illegal production and smuggling, full implementation of track-and-trace systems, and tighter retail monitoring. He said plugging these leakages could create fiscal space for public relief and development spending at a time of heightened economic strain.
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Oklahoma Cuts Cigarette Tax for HTPs
Oklahoma lawmakers approved legislation amending the state’s cigarette stamp tax law to extend a 50% tax exemption to cigarettes “intended to be heated rather than burned,” effectively lowering the excise burden on heated tobacco products. The measure revises definitions in existing statute to clarify that products designed to be heated still fall within the legal definition of a cigarette, but then carves out a partial exemption for those products from the stamp excise tax. The change applies within Oklahoma’s long-standing cigarette tax framework under the oversight of the Oklahoma Tax Commission.
The law directs the Tax Commission to create rules to implement the exemption and ensure appropriate tax stamps are available for heated products before the act takes effect on November 1, 2026.
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Australia Moving to Ban R&D Tax Credits on Tobacco, Gambling
Australia is moving to block tax incentives for research tied to the gambling and tobacco industries under new legislation introduced in the Lower House today (March 25). Assistant Treasurer Daniel Mulino said the measure would prevent taxpayers from subsidizing research that could worsen addiction and other health harms. The exclusion applies to all types of gambling- and tobacco-related R&D, though a carve-out ensures that studies aimed at harm reduction — such as addiction prevention or cessation strategies — remain eligible for R&D tax offsets.
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Nebraska Cigarette Tax Increase Fails to Advance
A proposal to raise Nebraska’s cigarette tax and increase levies on vaping products failed to advance in the state legislature after a cloture motion to end debate fell short. Danielle Conrad led a two-day filibuster against Legislative Bill 1124, arguing the measure would place a disproportionate burden on lower-income residents, while a group of fiscal conservatives also opposed the bill on anti-tax grounds. The proposal would have raised the state cigarette tax from 64 cents to $1.64 per pack, potentially generating up to $50 million annually to help address Nebraska’s budget deficit.
Supporters, including Appropriations Committee Chair Rob Clements, had promoted the measure as a revenue tool to offset rising Medicaid costs amid a projected budget shortfall of more than $100 million. A compromise amendment to remove the cigarette tax increase while retaining a higher tax on vape products — expected to generate about $6 million — was briefly adopted but ultimately voided after the cloture vote failed.
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Japan’s HTP Tax Changes Threaten JTI Growth: CFO
Tax changes in Japan that will eliminate preferential tax treatment for heated tobacco products are expected to weigh on growth this year, according to Japan Tobacco International CFO Vassilis Vovos. The policy shift would tax heated tobacco at the same rate as traditional cigarettes, potentially raising retail prices by 70 to 100 yen ($0.46 to $0.65) per pack after sales tax. Vovos said the company plans to introduce incremental price increases throughout 2026 to offset the impact and avoid a single steep price hike.
The tax change poses a challenge to JTI’s expansion of its Ploom heated tobacco device in Japan, the world’s largest heated tobacco market, which is currently led by rival Philip Morris International, according to Reuters. Parent company Japan Tobacco has relied on newer product categories to drive growth, with Ploom volumes rising more than 38% last year and reaching a 14.4% share of the heated tobacco segment. While executives warned the tax change could temporarily slow category growth, they said heated tobacco remains a key long-term revenue driver.
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Singapore’s Tobacco Taxes Increase 20% Today
Beginning today (Feb. 12), Singapore is increasing tobacco excise duties by 20% across all tobacco products as part of Budget 2026 measures aimed at reducing smoking rates. Duties on cigarettes, cigars, and similar products will rise from S49.1 cents to S58.9 cents ($0.39 to $0.47) per stick, while taxes on smokeless tobacco and beedies will increase from S$378 per kg to S$454 per kg ($$299 to $359). Duties on unmanufactured and cut tobacco, as well as other tobacco refuse products, will rise from S$446 per kg to S$535 per kg ($352 to $423).
The move builds on earlier a 10% tax hike in 2018 and a 15% hike in 2023, and complements broader tobacco-control policies, including standardized packaging and expanded smoke-free public spaces. Singapore’s daily smoking rate has steadily declined, reaching a record low of 8.4% in 2024, according to government health survey data.
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New York Gov. Floats 75% Tax on Nicotine Pouches
New York Gov. Kathy Hochul’s executive budget proposes applying the state’s existing 75% wholesale tobacco tax to nicotine pouches. The proposal comes as state tobacco tax revenue declined from about $1 billion in 2021 to roughly $793 million last year, while cigarette smuggling — estimated to account for more than half of cigarettes consumed in New York — costs the state about $812 million annually, according to Tax Foundation data. State health data show nicotine pouch use among New York high school students increased from 1.5% in 2022 to 3% in 2025. The tax proposal is under consideration as part of budget negotiations.