A Bit of Bad News for Cigar Fans in Philly

The “City of Brotherly Love” is not so lovely when it comes to a new cigar tax expected to be passed. The proposed cigar tax will be tacked onto individual cigars at a rate of 3.6 cents each. The overall proposed tax hikes are only on non-cigarette tobacco products, and also would include a tax on pipe and chewing tobacco of 36 cents per ounce.

These tax hikes on tobacco products are being proposed in order to help with a $150 million budget deficit that the city of Philadelphia is currently experiencing. The tobacco taxes are only a band-aid on reducing the deficit, if you take into account that they are only expected to bring in an estimated extra revenue of $4 million, according to the Philadelphia Daily News. The taxes are just part of a new $3.9 billion budget plan, which also includes higher property taxes and increased fees in the realm of trash hauling. The proposal was approved by the Philadelphia City Council towards the end of May.

For a point of reference, under the new tax a box of 25 cigars would see an increase of 90 cents, while a box of 20's cost to consumers would be increased by 72 cents. Obviously, these figures are not wallet-breaking, but they are still an increased tax on cigars nonetheless, and in this economy, a penny saved is a penny earned. On the flip side, a proposed tax on soda sales within Philadelphia of 0.75 cents per ounce was denied. Considering the obesity problems in the United States and just how much soda is consumed, such a tax would not only raise more revenue to help with the budget gap, but it would possibly curb the unhealthy habits of some. As usual, though, the cigar industry just keeps on taking hits, while others get off scot-free.