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How are cigar taxes in your country - Help needed from the non UK BOTLs
Thanks for all the very useful replies people. I'll crunch some numbers and let you know what comes out.
I've done some very preliminary calculations comparing UK and German prices and from the first things it would seem that taxes are after all really what make price so high over here.
In Australia tobacco is taxed per kg. The current tax rate is $323.xx per kg.
That is a fair amount to add to a box of cigars that may cost you $120usd.
This amount increases weekly by a small amount.
In the US, tax on cigars was until recently determined solely by each state. In my state, Pennsylvania, it's the standard 6% sales tax. They've tried imposing a state tobacco tax, but it hasn't passed. It seems that the likelihood of a particular state taxing tobacco depends primarily on how big the tobacco industry is in that state.
Around a year ago, the State Children's Health Insurance Program (SCHIP) was expanded to include a nationwide tax on tobacco products. SCHIP is a national program that provides fund matching for state-provided health insurance for uninsured children. For large cigars, it's 52.75% with a cap of 40.26 cents. The initial SCHIP expansion proposal asked for a tax rate of 20,400% on large cigars.
So, in Pennsylvania, I pay 6% state sales tax plus up to 40.26 cents SCHIP tax.
Last edited by Lou3; 02-02-2010, 09:06 PM.
Reason: Finally got paragraph spacing.
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