Indiana May Pass Cigarette Tax Hike

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Indiana May Pass Cigarette Tax Hike

Smokers in Indiana may soon be paying more for their cigarettes.

 

Under a proposal advancing in the legislature, the state could increase its tax on cigarettes by $1 per pack. A House committee approved the tax increase as part of the state budget this week. However, it requires the approval of another committee before going to the full House for a vote.

 

Under this proposal, Indiana's cigarette tax would increase from 50 cents a pack to $1.50 per pack. The legislation would also increase the tax on e-cigarettes by 10%. Indiana currently has one of the lowest cigarette tax rates in the nation. 

 

Supporters of the tax increase argue that it will help discourage people, especially kids, from starting smoking and it will encourage smokers to quit. They say the money will be used to help address health problems in Indiana. Opponents contend that smokers will visit other states to buy cigarettes, hurting Indiana businesses.

 

While there was no vote against this tax increase in committee, some members of the Indiana House have expressed opposition. It remains to be seen if it will survive a vote of the full House, which could occur next week. If it passes, the Senate will the consider it.

 

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