Cigar industry is terrified by tax hikes and smoking bans
Finding themselves in the middle of the most difficult times for tobacco industry, tobacco makers and tobacco sellers of premium-class cigars gathered in New Orleans to share their concerns and idea of how to handle with recession, constant tax hikes and strict smoking bans.
Annual Trade show opened its doors to more than 1000 retailers of premium hand-made cigars, which are selling for up to $30 each.
Christian McCall, chairman of International Premium Cigar & Pipe Retailers Association, said that the cigar industry has been coming through black days, as people simply don’t understand the difference between cigarettes and cigars.
He said that cigars have been an essential part of American life for ages, with such legends like Mark Twain, John F. Kennedy, Rush Limbaugh and many other people enjoyed having a cigar in afternoons; cigar has been presented during weddings and birth of children, and even athletes often celebrate a victory in championships with a cigar.
American Cigar Association president Norman Sharp said that the cigar has a genuine place in hearts and minds of countless people, as it has a lot of aficionados.
And many opponents, including the American Lungs Society that has declared that pipes and cigars should not be regarded as a healthier alternative for cigarettes, as they have been related to similar health risks.
According to American Cigar Association, there are up to 13 million regular cigar smokers across America, who light up from one cigarette a week to several a day.
However, when the federal tobacco tax was hiked in April, cigars gained their share of tax increase as well, with an increase between around 5 - 40 cents per cigar. The retailers have expressed their concerns, saying that state legislatures could follow the Congress’ steps by hiking taxes on cigars, in order to generate more money to the budget.
"Tobacco is regarded as an easy prey for lawmakers," Sharp stated.
In addition, cigars have been a target for public health groups and anti-smoking advocates.
Therefore, the industry fears that anti-smoking policies would come to include cigar clubs, private venues and cigar shops, stripping cigar-lovers from enjoying their cigar in peace.
Even until the American states and counties began implementing rigorous smoking policies, cigars were not welcomed in several places. Airlines, which used to allow cigarettes never permitted cigars. In addition, many bars, which have a designated area for smokers, don’t allow cigar smokers to light up there.
Consequently, smoking of cigars became in majority of cases, a private activity, with aficionados gathering in cigar clubs or even at home.
"The majority of cigar lovers prefer enjoying their cigars with other smokers in a comfortable place," Sharp said.
However, the economic downturn and anti-smoking policies have been the major reasons of a dramatic declined in premium cigar consumption, because cigar smokers simply can’t go out each time they want to smoke a cigar.
“They shouldn’t have imposed such a uniform law, since cigar smoking involves much more time than cigarettes,” said McCall.
