Cigar rollers and manufacturers across the country received a tax increase on Wednesday with the reenactment of the State Children's Health Insurance Program that President Obama signed into law in February. Though the tax increase was significant, from a 4.8 cent tax per cigar to nearly 10 times that amount, companies that supply cigar rollers for events—a popular entertainment option across Florida—are split on whether to raise their prices.
Santiago Cabana Cigars manager Liama Cavana said the tax has forced the company to raise its rate from $500 to $540 per hour. Echoing that sentiment, Miami Stogies will also increase its pricing by roughly $12 to 14 per bundle of 25 cigars. "The pricing is tied to not only the time [at an event], but also the cigar's price," said Miami Stogies president Marc Wijtenburg.
Miami's Master Cigar Roller and CF Dominicana Cigars—one of the top premium manufacturers in the U.S., with 31 cigar catering divisions across the country—said their prices would remain consistent.
“Events are not our sole revenue generator, but instead are used as a marketing tool to push the brand, so we absorb any increases,” said CF Dominicana president Dennis Briganti.
The legislation is an extension of a prior program that Congress proposed twice during George W. Bush's administration, though he refused to sign. Finally approved and signed by President Obama in February, the bill will provide health coverage to uninsured children, paid for by an increased tax on tobacco products made and imported into the United States.
Will the price increase curb rollers' presence at Florida events? Ysset Boan, president of planning company Glam Events in Miami, said she'll continue to book cigar rollers even if their prices increase as a result of the tax. "If it went along with the theme or what the client wanted, I would definitely do it again," said Boan. "I really don't think the tax will affect them that much, especially if you have an event with a lot of cigar aficionados."
