This Act may be cited as the Hookah Clarification Act of 2025.

(a) In general Section 5701(f) of the Internal Revenue Code of 1986 is amended to read as follows: (f) Pipe tobacco (1) In general On pipe tobacco, manufactured in or imported into the United States, which is not waterpipe tobacco, there shall be imposed a tax of $2.8311 per pound (and a proportionate tax at the like rate on all fractional parts of a pound). (2) Waterpipe tobacco On waterpipe tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $0.5662 per pound and (a proportionate tax at the like rate on all fractional parts of a pound).. (b) Conforming amendments Section 5702 of such Code is amended by adding at the end the following new subsections: (q) Waterpipe tobacco The term waterpipe tobacco means a tobacco product consumed or intended to be consumed in a waterpipe, including hookah tobacco, shisha, maassel, narghile, and argileh.. (c) Effective date The amendments made by this section shall apply to tobacco manufactured or imported after the date of the enactment of this Act.