Nicaragua Objects to
U.S. Cigar Tax
Nicaragua's
legislatureon Thursday
issued a declaration
objecting to a planned
U.S. tax on premium
cigars.
The measure would raise
the price of cigars from
five cents to us$10
dollars for each puro;
hitting the tobacco
industry in Honduras,
Jamaica, Mexico,
Nicaragua, and the
Dominican Republic.
Freddy Torres, a member
of the assembly's
economic commission,
said that the
declaration calls on the
U.S. legislature to
reconsider the measure.
"This measure will
prejudice thousands of
workers in the tobacco
growing and cigar making
industry," Torres said.
"The U.S. Congress and
Senate should recognize
the damage this measure
does to Nicaragua in its
fight against poverty,"
he added.
Nicaragua would lose
us$60 million dollars a
year, because 69 percent
of its cigar exports go
to the United States,
Torres said. This could
affect 70,000 to 100,000
workers, he added.
The United
States-Central America
free trade agreement
CAFTA does not include a
provision for tobacco
exports.
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