Using a Commercial Roll-Your-Own Machine with Pipe Tobacco to Make a Carton of Cigarettes

A GAO employee uses a commercial roll-your-own machine to make a carton of cigarettes with pipe tobacco, which has a lower federal excise tax rate than most smoking tobacco products. Customers can save money when using the machines to make cigarettes with pipe tobacco. As manufacturers and consumers switch to lower-taxed tobacco products, GAO estimates a significant loss in potential federal revenue.