NZ Researchers Say Double Tax Hikes on Cigarettes

August 2, 2017 Taxation in New Zealand

Smokefree NZWELLINGTON – New Zealand needs to double-down on its fight against smoking, if it wants to reach its goal of a smoke-free nation.

The result of joint research conducted by the University of Otago in New Zealand and the health advocacy group H?pai te Hauora have led to a push for a doubling of the tax hikes on tobacco products sold in New Zealand.

Currently, the tax rate on tobacco in New Zealand is scheduled to be increased by 10 percent per year on January 1st, until 2020.

The hikes are part of the government’s “Smokefree 2025” strategy, which is intended to see a reduction in smoking rates in the country, to the point where less than 5 percent of New Zealanders are smokers by 2025.

The researchers are now claiming that in order to meet the goal, the government will need to increase the tax hikes to 20 percent per year.

Along with the tax hikes, the researchers called for some dramatic changes to the way that tobacco is sold, with a restriction on where it may be sold, how much nicotine cigarettes can contain, and the nature of the additives added to tobacco.