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Pipe Tobacco Tax Target of Federal Bill

WASHINGTON -- A new bill was introduced and is pending in Congress, called H.R. 4439, that would amend federal law established by last year's State Children's Health Insurance Program (SCHIP) expansion to make the federal excise tax rate on pipe tobacco equal to the tax rate on roll-your-own tobacco, the National Association of Tobacco Outlets (NATO) reported.

The federal pipe tobacco tax stands at $2.8311 per pound, and was increased last year from $1.0969 per pound, as a result of the SCHIP expansion. The new bill would hike the per-pound tax on pipe tobacco to $24.78 per pound, according to NATO.

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