Cigarette Faces Tax Increase In Oklahoma
The state of Oklahoma has implemented a tax increase for cigarette products. According to the new law, every pack of cigarette will have an added $1 tax on top of the retail price. Businesses that are planning to sell cigarettes must have OK tax ID in order to be considered legal. Local retailers view that this new additional tax increase will have a negative impact on customers who will blame lawmakers in return.
According to a representative of Tulsa, a company under Quik Trip Corp that is based in Oklahoma, the new tax increase which was approved March of this year was implemented on the first day of July. The new legislation is said to be advantageous only to tribes in Native America because their businesses have been given a tax break by the state with regards to sales of tobacco products.
QuikTrip’s manager of public and government affairs, Mike Thornbrugh, said that the only retailers that will benefit from the tax increase are the tribes because they have been granted a pay rise amounting to $50 million.
Thornbrugh added that consumers of tobacco products are very disappointed with the new legislation. Manufacturers are relieved that their bad reactions are directed towards the lawmakers and not the companies.
Before the new tax increase was implemented, the state is already imposing a tax of $1.03 for every pack while every 10 little cigars are imposed with a tax of $1.20.
The legislations came after the teachers decided to organize a strike. The pressure forced lawmakers to pass the budget at the end of March and it covers the increase in tax for little cigars to be equal to that of the cigarettes. Aside from the cigarette tax, fuel tax has also increased. Gasoline now cost 3 cents more for every gallon while diesel is charged 6 cents more for every gallon. All wells are also subjected to a higher production tax from 2 per cent it has gone up to 5 per cent.
Businesses planning to enter the state’s market are required to get OK tax ID as well as to follow the changes in pricing of cigarettes and fuel products.