Panel OKs 16 Cigarette Tax

The Senate Finance Committee voted today to continue the 16 cent-a-pack cigarette tax and impose taxes on chewing tobacco and snuff.

As part of the cigarette tax package, the panel also agreed to a new tobacco price support program favored by farm state senators in return for their support of the cigarette tax. The cigarette tax is scheduled to drop to 8 cents a pack Oct. 1 unless Congress acts. The tax on snuff would amount to 1.05 cents per ounce under the bill and 0.5 cent per ounce on chewing tobacco.