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While states have fared better during the COVID-19 pandemic than originally feared, both state governments and the federal government must decide how best to maintain tax revenues and fund growing expenses while not adding new burdens to a suffering economy.[4] As a potential solution, excise taxes may be an alluring proposition to some lawmakers, because excise taxes could be an avenue for governments to raise new revenue.[5] Since they are often levied narrowly (on one ingredient in a product or one specific type of transaction) and on products that may be considered harmful, excise tax hikes may be a politically attractive source of additional revenue

For example, the Cyprus draft recommended a rate of 2 euros per pack of 20 heated tobacco sticks, lower than the 2.16 euros proposed by the EU Commission and the Danish presidency