The Indiana House is expected to vote on a bill Tuesday, that would raise the state's cigarette tax.
Revenue from the 25 cent increase would be used to provide health insurance to low income Hoosiers, primarily children.
Governor Daniels says raising the cigarette tax would also help many Hoosiers to quit smoking.
The current cigarette tax is 55 and a half cents per pack.
House speaker B. Pat Bauer thinks the bill will be approved.