The cigarette tax in Mississippi will increase on 15 March after legislature has last week voted for a tax hike of USD 0.50 (EUR 0.37) a pack in a bid to raise revenues amid the economic slump.

Republican governor Haley Barbour, a former tobacco lobbyist has long opposed to raising Mississippi’s cigarette tax – which is currently the third lowest in the country – but signed the state’s first increase since 1985 on Wednesday 13 March.
Previously, the Senate voted 40-4 and the House 102-18 to approve the bill to boost the state's excise tax from USD 0.18 to USD 0.68 per pack. The tax increase is levied in addition to the federal cigarette tax hike of 156 per cent that went into effect on 1 April.
Lawmakers struggled for years to pass a cigarette tax hike, but Barbour had steadfastly opposed past proposals. He switched his stance after a tax commission he formed released a study that recommended a cigarette tax. The tax hike comes as Mississippi struggles with an estimated revenue shortfall of USD 400 million for the year that ends 30 June. The cigarette tax is estimated to generate more than USD 113 million for the next fiscal year. (pi)