National Briefing | Washington: Tax-Free Tobacco for Foreign Diplomats

Foreign diplomats based in the United States can now buy tobacco products tax-free. Under a State Department rule that took effect Tuesday, no federal, state or local tax will be levied on cigars, cigarettes and pipe tobacco for diplomats whose countries extend the same privilege to American envoys. A notice in the Federal Register says the department took the action to improve tax-exemptions for American diplomats posted abroad.