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Fiscal and Policy Implications of Selling Pipe Tobacco for Roll-Your-Own Cigarettes in the United States

Figure 1

Roll-your-own (RYO) and pipe tobacco sales in the United States, January 2007–August 2011.

This stacked area graph shows the total amount of loose tobacco (RYO and pipe tobacco) sales in the United States. The joinpoint fit line shows loose tobacco production was increasing by 15% annually prior to January 2009, mainly due to increases in RYO sales. Loose tobacco production dipped after the Federal tax increase was enacted, but only until the new tax rates went into effect in April 2009. Since April 2009, loose tobacco production has increased by 31% annually, twice as fast as before the tax was changed.

Figure 1