California will more than double the duty on tobacco products other than cigarettes from 1 July, an increase that includes e-liquids containing nicotine, shisha, little cigars and moist snuff, the state Board of Equalization said.
The increase was agreed by the board in April and came in response to Proposition 56 approved by California voters last November. The ballot measure raised combined duty on cigarettes to USD 2.87 (EUR 2.53) per pack of 20. State law requires the board to raise tax on other products equivalent to the cigarettes tax, the board said.
Duty on non-cigarette tobacco products will increase from 27.3 per cent of wholesale cost to 65.08 per cent. The new rate will remain in effect through 30 June, 2018.
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