The United States has proposed a new bill to levy a federal electronic cigarettes tax for the first time, which is also the first time that the United States has raised the tobacco tax rate in 10 years.
Dick Durbin, the majority whip of the US Senate, and Ron Wyden, chairman of the Senate Finance Committee, supported the tobacco tax equity act of 2021. The bill will amend the internal revenue act of 1986. Us congressman Raja krishnamoorthi (Illinois) and seven other Senate Democrats also supported the bill.
Durbin said the new bill would eliminate tax loopholes by raising the federal tax rate on cigarettes, linking it with inflation, and setting the federal tax rate on other tobacco products at the same level, in order to eliminate tax and regulatory loopholes in large cigars, smokeless tobacco products and pipes.