Federal Tobacco And Excise Tax  

In the United States economy the product which has been labeled with the highest tax is none other but Tobacco. A conglomeration of federal, State and the local taxes on cigarettes converts the sale price into a form which at the end pinches the consumers who purchase them.

An ever increasing price of cigarettes is giving rise to many malpractices and as a result there are outlets which are selling them illegally at lower prices. On top of it, an increase in the federal excise tax on tobacco will further increase crime in the retail outlets. These outlets are subjected to robbery more often because of a dramatic hike in the rates of cigarettes in the recent years.

On February 4, 2009 in a dramatic move by the federal, The Children’s Health Insurance Program Reauthorization Act of 2009 became a law under which it was announced that there will be an increase in the federal excise taxes on tobacco products, and a floor stocks tax will be imposed, it also mentioned about certain additional requirements for the manufacturers and importers of processed tobacco. This law extended the meaning of the term roll-your-own tobacco and transformed the basis of refusal, deferment and annulment of permit. This increase in the excise tax is effective from April 1, 2009. An imposition of floor stocks tax on all tobacco products, cigarette paper and cigarette tubes was held for the stocks which were on sale on the date when the law became effective. The floor stocks tax is actually a one time excise tax that is applicable for a product that is likely to undergo a hike in the tax.

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Federal Tobacco And Excise Tax

Guide-To-Excise-Tax      An excise tax is comparatively a trivial source of revenue for the government. These are applicable to certain products and events that are exercised by various business companies. Excise taxes are supposed to be a form of taxation that are charged tactfully which means the government does not attach them right away. More..




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