Reduces excised tax on premium cigars to 50 cents per stick.
An Arkansas tax cap on cigars was implemented on Oct. 1, marking Arkansas as the latest state to put limitations on its cigar tax laws, the Cigar Association of America (CAA) reported.
In March, Arkansas passed a bill that caps the state’s excise tax on premium cigars at 50 cents per stick, down from the previous tax of 68% of the manufacturer’s price. CAA noted that this cap will be good for retailers and consumers, and should encourage the in-state purchase of tobacco products.
