Navajo Nation Increases Nicotine Tax, Adds Vapes

The Navajo Nation Budget and Finance Committee Vice Chair Carl R. Slater joined Navajo Nation President Dr. Buu Nygren as he signed Legislation 0145-24 into law, amending the Tobacco Products Tax to include electronic smoking devices and other nicotine products.

Council Delegate Slater, who sponsored the legislation, thanked President Nygren for signing the bill, emphasizing its potential to reduce tobacco and nicotine use among Navajo youth.

“We’ve seen the tobacco and nicotine industries evolve to target our young people in new ways, making them lifelong users dependent on these harmful substances,” Council Delegate Slater said. “Our traditional and sacred tobacco serves a much different purpose. It’s not about quick gratification, but about purifying our minds so our thoughts are strong, clear, and aligned with our teachings.”

The newly implemented Nicotine Products and Electronic Smoking Products Tax applies a 22 percent tax rate to nicotine and electronic smoking devices, according to media reports. It also increases taxes on tobacco products, including an additional 12.5 cents per cigarette, $3.85 per ounce of smoking tobacco, snuff, and chewing tobacco, $1.25 per ounce of plug or twist tobacco, $2.50 per package of small cigars, and $3.62 per larger, single cigar.

Council Delegate Slater highlighted how the Fund Management Plan for the new tax will support the Office of Traditional Culture and Spiritual Healing, which has not been funded since its creation. Additionally, the new tax revenue will support the Department of Health’s projects in partnership with traditional Navajo healer non-profit organizations.