Georgia Lawmakers Push for increase in Cigarette Tax

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Philippines tobacco excise tax 2025

A coalition of Georgia lawmakers and prominent public health organizations is intensifying efforts to raise the state’s cigarette tax, which currently stands as the second-lowest in the nation. Advocates argue that an increase would not only discourage smoking and improve public health outcomes but also generate significant revenue to help offset the substantial healthcare costs associated with smoking-related illnesses. This renewed push comes as federal budget cuts impact state-level tobacco prevention programs.

The Georgia House Study Committee on the Costs and Effects of Smoking recently held its first meeting, hearing testimony from groups including the American Cancer Society, the American Heart Association, the American Lung Association, and the Campaign for Tobacco-Free Kids. Experts reiterated the severe health consequences of smoking, noting that cigarette smoke contains at least 7,000 chemicals, 69 of which are known carcinogens. Danna Thompson from the American Lung Association emphasized that smoking harms nearly every organ and is responsible for nine out of ten lung cancer deaths, in addition to causing COPD, emphysema, and heart disease.

A key argument presented was the fiscal imbalance: Georgia currently spends significantly more on Medicaid costs for smoking-related illnesses than it collects from its cigarette tax. Andrew Lord, a lobbyist for the Georgia Society of Clinical Oncology, pointed out that Georgia’s tax is a mere 37 cents per pack. He suggested that raising it by $1 to $1.37 per pack could generate an estimated $400 million to $500 million annually. However, Danny Kanso, a senior fiscal analyst with the Georgia Budget and Policy Institute, noted that even this substantial increase wouldn’t fully cover the approximately $850 million Georgia spends each year on Medicaid costs attributable to smoking, while the current tax only generates about $115 million.

State Representative Michelle Au (D-Johns Creek), a medical doctor, has been a leading proponent of a tax increase. After five years of effort, she successfully pushed for the creation of the study committee, a move she sees as a sign of increased receptiveness from the Republican-led legislature, which generally opposes tax hikes. Rep. Au has also introduced House Bill 83, with some Republican co-sponsors, to raise the tax to 57 cents per pack. She believes that recent federal budget cuts, which led to the elimination of the Georgia Department of Public Health’s Tobacco Use Prevention Program last month (though core cessation programs remain), might be shifting some traditional GOP opposition to tax increases.

Courtlandt Fouche, former director of the eliminated program, stated that the loss of $2 million in federal CDC funding far outweighed the $750,000 the state allocated from the national tobacco lawsuit settlement, leading to job losses and a disruption in outreach efforts that helped thousands quit smoking. Proponents of the tax hike argue it’s a proven way to reduce smoking rates, especially among youth, and to help fund essential health services burdened by tobacco use.

Matthew Ma
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