Hookah Clarification Act of 2025

This bill changes the federal tax rate for hookah tobacco (also called waterpipe tobacco) from $2.83 per pound to $0.57 per pound, while keeping the higher tax rate for regular pipe tobacco. It directly affects manufacturers and importers of hookah tobacco products like shisha and maassel by lowering their tax burden. The bill also formally defines "waterpipe tobacco" to include common terms like hookah, shisha, and argileh, ensuring clear tax application. These changes apply to tobacco products manufactured or imported after the bill's enactment date.