The excise tax rate on cigarettes will increase 45 percent and the tax on cigars and other tobacco products will increase 25 percent, the Internal Revenue Bureau announced Tuesday. The Legislature increased the taxes earlier this year in an effort to raise revenue and to discourage smoking. (See Related Links below)
The IRB’s excise tax system and the appropriate online tax forms have been revised to reflect the change beginning on the implementation date, June 1, 2016. Excise taxpayers are urged to update their internal systems to reflect the increase in tax for these two categories.
Taxpayers who have questions concerning the increase in the tax rates can call the Office of Chief Counsel at (340) 715-1040 ext. 2248.