President Donald Trump is expected to announce the U.S. will begin a $1.5 billion tobacco excise tax hike this week, as part of an effort to boost tobacco sales to the millions of Americans who have tried tobacco products in recent years.
The tax hike is part of the president’s ongoing effort to “reign in the epidemic” of tobacco use among young people, according to the White House.
The White House did not provide further details on the plan.
The new cigarette tax, which would increase the cigarette tax from 10% to 12%, would be phased in over five years, starting in 2019.
The cigarette tax hike would be part of a $3.8 trillion tax package that includes the elimination of a variety of other taxes and fees.
It includes: a 10% excise tax on cigarettes, a 6.5% tax on cigars, and a 5.8% tax paid by wholesale tobacco producers.