Amid fiscal turmoil, House votes to cut tax on loose-leaf tobacco

As many places across the country raise tobacco taxes — in an effort to reduce usage and save on public health costs down the road — the Texas House has gone in the other direction.

Members of the Texas House on Wednesday approved a bill to lower a tax on Red Man and other brands of loose-leaf chewing tobacco.

When Rep. Allan Ritter, R-Nederland , laid out House Bill 2599, one freshman House member from Central Texas couldn't believe his ears.

"I just had to clarify. It's cutting taxes to chewing tobacco?" a shocked Rep. Jason Isaac, R-Dripping Springs, asked from the floor.

Senate panel, Shumlin at odds over cigarette tax hike

MONTPELIER -- The Senate Finance Committee set up a potential showdown with the Shumlin administration Friday when the panel voted to support a $24 million tax package that included a $1 increase in the tax on cigarettes.

Gov. Peter Shumlin objects to any increase in the cigarette tax because he predicts sales and, thus, tax revenues would drop if Vermont's tax rate exceeds that in neighboring states. Lawmakers expect a $1 increase would raise $9 million in new revenue.

The Shumlin administration also argues the cigarette tax is regressive, meaning it has a higher impact on low-income Vermonters.

What does smoking cost?

People who smoke don’t usually want to count the cost of a pack or more of cigarettes a day. And those who suffer cancer, emphysema or other smoking-related diseases surely do not like to think of what their habit costs in terms of doctor and hospital visits.

But really, in individual terms, the worst “cost” is not monetary: It involves health and quality of life.

Costs matter, though, and with Medicaid in Arizona running short of cash, there reportedly is consideration there of levying an annual $50 “tax” on those who smoke, are overweight or suffer diabetes.

Tobacco War Brewing

A battle between the nation’s largest cigarette makers and a Florida company is heating up at the state Capitol. Price is the issue. Dosal Tobacco was left out of the states settlement with cigarette makers and is able to sell more cheaply, which has given them market share and upset traditional tobacco companies.

Florida made 305 brand cigarettes are popular. Chris Askey smokes them because the are as much as three dollars a pack cheaper than some of the traditional brands.

“ Five dollars a pack….Six dollars a pack….that is just too high for me,” he said.

Local tobacco stakeholders eye export market

Local farmers of leaf tobacco, or what is commonly called 'grabba' could be looking at tapping into the lucrative market for their products overseas.

Leaf tobacco is among the top ten cash crops in major consumption centres such as the United States and China behind crops such as corn, wheat, hay, soybeans, cotton and rice. As far back as 1995, the tobacco crop produced across 15 United States valued at almost US$2.3 billion, representing approximately 2.7 per cent of the total for all cash crops and farm commodities.