Straight from the IPCPR who have been fighting the SCHIP for quite some time

Congress has introduced the reauthorization of the SCHIP bill--HR2. The cigar tax proposal is as follows:

52.4 percent on large cigars (most premium cigars follow under this federal classification) with a cap of no more than 40 (forty) cents per cigar. This is far lower than the original proposal from the Senate of $10 per cigar and $3 proposed by the House.

This has been a long, tough fight for all of us, and considering we are still being hit with a tax increase on cigars, our industry feels the proposed 40-cent maximum (cap) is sustainable and certainly better than the original proposals.

We expect HR2 to move smoothly through Congress and will not face defeating oppositon. As more news develops we will continue to keep you informed.