Increases to the excise tax rates for cigarettes, cigars and other tobacco products will go into effect on June 1, according to a press release issued on Tuesday by the Virgin Islands Bureau of Internal Revenue (BIR).
The excise tax rate on cigarettes has increased to 45 percent. In addition, the excise tax on cigars and other tobacco products, not including cigarettes, has increased to 25 percent.
BIR’s excise tax system and the appropriate online tax forms have been revised to reflect the change commencing on the implementation date of June 1. Excise taxpayers are urged to update their internal systems to reflect the increase in tax for these two categories.
Taxpayers who have questions concerning the increase in the tax rates can call the Office of Chief Counsel at 715-1040, ext. 2248.
