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9/24/2010

The U.S. Congress significantly increased Federal excise tax on "little" cigars, defined as filtered, often sweetly favored products that are similar in size and shape to cigarettes. Some manufacturers responded by increasing the weight of their little cigars so they qualified as conventional, "large" cigars, which are taxed at lower rates. Congress is now working to close this loophole and investigate whether some manufacturers in the $8 billion cigar industry are avoiding taxes.