Hookah Clarification Act of 2025

The Hookah Clarification Act of 2025 would amend the Internal Revenue Code to create a distinct federal tax on waterpipe tobacco (also known as hookah tobacco and related terms). It sets a per-pound tax for waterpipe tobacco of $0.5662 (plus the same proportionate tax for any fraction of a pound), while maintaining a higher per-pound tax of $2.8311 for pipe tobacco that is not waterpipe tobacco. The act defines waterpipe tobacco to include hookah tobacco, shisha, maassel, narghile, and argileh. The tax would apply to tobacco manufactured or imported after the enactment date, with no retroactive effect. The bill was introduced in the House by Rep. Issa (for himself and Rep. Davis of North Carolina) and referred to the Ways and Means Committee.