Indiana Tobacco Tax Increase Will Protect Kids and Save Lives

Statement of Carrie Arblaster, Director, Midwest Advocacy Programs, Campaign for Tobacco-Free kids

WASHINGTON, April 25, 2025 /PRNewswire/ -- The Indiana General Assembly has delivered a resounding victory for kids and public health by passing a $2 per pack increase in the state cigarette tax. The budget also increases taxes on other tobacco products, including e-cigarettes.

We applaud Indiana legislators for supporting the tobacco tax increase and look forward to Gov. Mike Braun signing it into law. We also applaud the Raise It for Health coalition of almost 200 leading health, business, youth and community organizations that have worked tirelessly for years to increase Indiana's cigarette tax, which has not been raised since 2007. Their leadership and advocacy will improve health and save lives in Indiana for generations to come.

The evidence is clear that increasing the price of cigarettes and other tobacco products is one of the most effective ways to reduce tobacco use, especially among kids. The $2 cigarette tax increase will prevent kids from smoking, encourage smokers to quit, save lives and save money by reducing tobacco-related health care costs, which total $3.4 billion a year in Indiana. As the Indiana Chamber of Commerce has repeatedly stated, a cigarette tax increase is also good for business because it will improve the health of employees and lower health care costs for employers.

The increase will take effect July 1 and bring Indiana's cigarette tax rate to just under $3 per pack. The cigarette tax increase will have enormous benefits and is projected to:

• Prevent 7,000 Indiana kids from becoming smokers;
  
  
• Spur 32,400 current adult smokers to quit;
  
  
• Save 9,900 Indiana residents from premature, smoking-caused deaths; and
  
  
• Save over $492 million in future health care costs.

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SOURCE Campaign for Tobacco-Free Kids