This territory isn’t the only place where tobacco taxes will increase soon.
The United States Virgin Islands also announced this week that excise taxes on cigarettes, cigars and other tobacco products will go up on June 1 — the same day import taxes on tobacco and alcohol are scheduled to increase here.
According to a USVI Bureau of Internal Revenue press release, the excise tax on cigarettes will increase to 45 percent, and the tax on cigars and other tobacco products will increase to 25 percent. The press release did not list the current rates.
Meanwhile, the new regime in this territory will change the way alcohol and tobacco are taxed, switching from quantity of what’s imported to the value of what’s imported, according to Customs Commissioner Wade Smith.
For example, whereas whiskey is currently taxed at $3 per gallon, it will soon be taxed at 25 percent of its value. Similarly, whereas tobacco is currently taxed at $0.50 per pound, as of June 1 it will be taxed at 50 percent of its value.
{fcomment}