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Guam Governor Signs Tobacco Tax into Law

by taxnick on February 5, 2010

Governor Felix Camacho Friday signed bill 150 into law.

It will raise the current $1 dollar tax on a pack of cigarettes to $3 dollars. The higher tax taxes effect in 60 days, the first week of April.

Cigars will be taxed at .40 cents per mini cigar, .44 cents per regular sized cigar, and .50 cents per large cigar. Chewing tobacco will also cost an additional dollar per can.

Vice-Speaker BJ Cruz was the author of this legislation.He says that he knew it would make people upset but it was a piece of legislation that he had to push through when he heard that there is one diagnosis of lung cancer per week on Guam.

“This is a very important piece of legislation because it greatly supports with our attempt to discourage tobacco usage in our community,” said Governor Camacho. “Lt. Governor Cruz and I pledge to continue supporting all efforts that provide for a healthier quality of life for our people.”

“I want to commend Governor Camacho and members of the Legislature for ensuring that this became law,” said Lt. Governor Cruz. “This will help us decrease tobacco usage among our people, but more importantly, it will reduce the number of tobacco-related health issues we would otherwise have to address in the future.”

According to PL 30-80, a significant amount of revenue generated from the tax increase will be deposited into the newly created Guam Cancer Trust Fund to be used by programs that support cancer screenings, treatment, and support services.

Additionally, tax revenues will go to GMH, DPHSS, and DMHSA to support disease prevention programs and address future healthcare demands associated with tobacco use.

Source

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