Proposed Federal Budget Includes Cigarette Tax Hike | NACS Online – Media – News Archive
Sign In Help

The Association for Convenience & Fuel Retailing

Skip Navigation LinksNACS Online / Media / News Archive

Proposed Federal Budget Includes Cigarette Tax Hike

President Obama’s proposed budget nearly doubles the federal excise tax on tobacco products.
March 6, 2014

​WINSTON-SALEM, SC – President Obama’s proposed fiscal year 2015 budget, submitted earlier this week, would nearly double the federal excise tax on tobacco products if Congress approves it, the Winston-Salem Journal reports.

The budget seeks to raise the federal tax on cigarettes by 94 cents a pack, up from $1.01 currently. There would be similar increases on most other tobacco products.

Last year, attempts to raise the federal excise taxes on tobacco failed to gain legislative traction.

Obama has targeted the increased tax revenue to expand free pre-kindergarten education. The increase is projected to raise $78.1 billion over 10 years, according to the U.S. Office of Management and Budget.