INDIANA — The American Heart Association is proud to see a years-long effort to raise the tobacco tax in Indiana culminate with a $2 per pack increase that will take effect July 1. The legislation also includes a parallel tax on all other tobacco products, including e-cigarettes.
“This decisive action by the Indiana General Assembly demonstrates a commitment to safeguarding public health and creating a healthier future for all Indiana residents,” said Christina Cesnik, Indiana government relations director for the American Heart Association.
According to the Tobacco Free Indiana coalition, these actions are projected to prevent 7,000 Hoosier youth from becoming smokers and encourage 32,000 Hoosiers to quit smoking, resulting in long-term healthcare cost savings of $492.78 million. Additionally, the tax is expected to increase state revenue by $318.42 million—a win for both public health and economic stability.
“It is crucial that all other tobacco products, including e-cigarettes, are taxed at equivalent rates to the $2 per pack cigarette tax increase to ensure these positive outcomes. Ensuring parity in taxation is essential to encourage tobacco users to quit entirely, rather than switch to lower-taxed, lower-cost products,” Cesnick added.
Under the current code, the law would include a 44% wholesale tax on the “tobacco product category” and, for “open systems,” a 26% retail tax, aligning with the new cigarette tax rate.
“I’d like to thank Chair Jeff Thompson, Chair Ryan Mishler and the members of the Indiana General Assembly for standing strong against Big Tobacco and successfully defeating an effort to lower the tax for heated tobacco products and their steadfast dedication in defeating an attempt to weaken Indiana’s smoke-free laws by rejecting an exemption for cigar rooms,” Cesnik said. “Your resolve sends a powerful message that public health, smoke-free workplaces, and clean air take precedence.
“In addition, I’d like to thank everyone on the Tobacco Free Indiana coalition as well as my predecessor, Danielle Patterson, for working so hard on this issue for almost two decades.”
