| Proposed U.S. Tobacco Tax Will Help Kids, Harm Nicaragua's Cigar Industry August 16, 2007 Makers of some of the world's finest cigars are warning that a new tobacco tax under debate in U.S. Congress could harm the livelihoods of thousands of Nicaraguan workers. But lobbying against the tax will be about as popular in the U.S. as kicking puppies.
The exact tax figures are still being debated, but initial estimates suggest that cigarettes will jump by 61 cents and cigars by as much as $10 each, essentially doubling the price of some Nicaraguan-made puros (cigars). The Nicaraguan Cigar Association is urging the Ortega administration to speak out against the proposed U.S. law, warning in a statement that the tax could harm the "national interest." The head of Nicaragua's National Assembly, Renee Nuñez, is expected to visit Washington, D.C., to lobby against the tax. But experts say that the proposed tax will only violate CAFTA if it is executed in a "discriminatory fashion," meaning that taxes are fine as long as they apply equally to American and Nicaraguan tobacco products. Still, the tax is expected to be hard felt in Nicaragua, especially now that local tobacco growers are showing strong signs of growth. Out of the magazine Cigar Aficionados' top 25 ranked cigars, 11 contain tobacco from Nicaragua. Your Latin America Insider, Suzan Haskins P.S. Even if you don't smoke, there's a lot to like in Nicaragua…. | |
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