While there have been several premium cigar manufacturers who have announced price increases announced over the past few weeks, Perdomo Cigars will not be one of them. Company President Nick Perdomo informed Cigar Coop that Perdomo Cigars will not have any price increases at this year’s IPCPR Trade Show. In addition, Perdomo confirmed that he will continue to absorb the SCHIP tax for all pre-predicate date products being showcased at the Trade Show.
As a company, Perdomo has worked hard to keep prices stable. In fact, the company has only had five price increases over the past 23 years. This is particularly impressive considering the company has absorbed the SCHIP tax since it was raised for premium cigars in 2009.
SCHIP stands for State Children’s Health Insurance Program. This program administered by the United States Department of Health and Human Services that provides matching funds to states for health insurance to families with children. The funding to this program is derived primarily tobacco taxes. In 2009, the federal tax was raised to 40 cents of cigar at the time of importation. Shortly after the new tax law was put into effect, Nick Perdomo made a bold move announced that he would absorb the excise tax and not pass the costs to the consumer. Since then, he has continued to absorb these costs.