September 06, 2007 00:07 ET

New Tobacco Tax Would Raise Cigar Taxes by 5,900%

Proposed Tobacco Tax Threatens Cigar Industry, According to

STONE RIDGE, NY--(Marketwire - September 6, 2007) - In a devastating move that has sent shock waves through the cigar industry, the United States House and Senate have proposed new bills that would increase taxes on premium cigars by as much as 5,900%.

The Senate bill taxes large cigars at a rate of 53.13% of the sales price, with a cap of $3 per cigar. The House bill taxes large cigars removed after 2007 and before October 1, 2013, at a rate of 33% of the sales price, with a cap of $1 per cigar. Large cigars removed on and after October 1, 2013, would be taxed at a rate of 40% of the sales price, keeping the cap of $1 per cigar.

The Senate bill would increase the current cap by 5,900%. The House bill would increase it by 1,900%.

"Large cigars are already taxed higher than any other product on which a federal excise tax is levied," said General Manager David Cagan. "This unusually high cigar tax could stop consumers from smoking cigars altogether, thereby creating no additional revenue for the government and putting many people in the cigar industry out of work."

"Millions of jobs are at stake just in this country alone," said Rocky Patel, cigar manufacturer. "Directly we will lose a half million jobs. Indirectly over a million and a half jobs will be affected. In Honduras, Nicaragua and Dominican over 400,000 jobs will be lost directly or indirectly as a result of this unfair tax."

Once differences in the two bills have been resolved, the measure will be voted on when Congress re-convenes in early September and then sent to the President -- who remains adamant that he will veto any major expansion in the SCHIP program. The issue could ultimately play out into October and possibly beyond.

"While we offer the best prices on premium cigars at, our thousands of satisfied cigar smokers could have a problem paying such an increased price," said Cagan. "A tax increase on cigars this high is unprecedented in the history of American taxation. Please contact your local congressman and senators to dissuade them from voting for this bill."

For more information about cigars and smoking accessories, call 888-41-CIGAR or visit

About, the leading online cigar distributor, carries, sells, and promotes all major brands of premium cigars, from the world's bestselling brands to hard-to-find boutique lines. High volume sales, fast turnover rates, and longstanding relationships with cigar manufacturers around the world enable to offer one of the most extensive collections of premium cigars at discounted prices, making it the premier online destination for cigar aficionados and beginning smokers alike.