Several months later, though, it appears that the makers of cigarette-shaped little cigars have found a way to escape the high taxes. The cigarmakers have added more weight to their cigars, reclassified them as large cigars and now are subject to a lower tax rate, said Norman Sharp, president of the Cigar Association of America.
In the spring, the cigar industry rallied against a higher federal tax rate implemented to benefit the State Children's Health Insurance Program. One Tampa cigar factory, Hav-A-Tampa, blamed SCHIP for a steep drop in sales, and the company ceased its Tampa operations in the summer. Hav-A-Tampa's parent, Altadis USA, moved the Tampa plant's operations to Puerto Rico.
Blowing smoke at tax continues at tbo.com...
