Bill > HR4404

This bill, known as the "Hookah Clarification Act of 2025," proposes to amend the Internal Revenue Code to establish a specific tax rate for waterpipe tobacco, which is distinct from traditional pipe tobacco. The bill defines waterpipe tobacco as a tobacco product consumed in a waterpipe, including varieties known as hookah tobacco, shisha, maassel, narghile, and argileh. Under the proposed changes, pipe tobacco that is not waterpipe tobacco would be taxed at $2.8311 per pound, while waterpipe tobacco would be taxed at a lower rate of $0.5662 per pound. The tax would apply to tobacco manufactured or imported into the United States after the date of the bill's enactment. By creating this separate tax classification, the bill aims to provide clarity in the taxation of different types of tobacco products, specifically addressing the unique characteristics of waterpipe or hookah tobacco, which is commonly used in Middle Eastern and North African cultural smoking practices.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4404/all-info