Sin Tax Tobacco

About Sin Tax Tobacco

Sin taxes are excise taxes on goods considered harmful, primarily tobacco, alcohol, and gambling. Tobacco taxes have been particularly effective public health tools. The World Health Organization estimates that a 10 percent increase in tobacco price reduces consumption by 4 to 5 percent. US federal tobacco taxes were increased dramatically in 2009, with the cigarette tax rising from 0.39 to 1.01 per pack. State tobacco taxes vary from 0.17 in Missouri to 4.35 in New York. The UK has among the highest tobacco taxes in the world. Sin taxes raise significant revenue while reducing harmful consumption. However, high tobacco taxes have led to significant tobacco smuggling in countries like the UK and Australia.