Cigarette Taxes Hiked in NZ

January 5, 2018 Taxation in New Zealand

Cigarette taxes in NZWELLINGTON – The prices of cigarettes in New Zealand have risen by 60 percent since 2012, and the trend is not set to stop anytime soon.

On January 1st the price of cigarettes in New Zealand rose, as another tranche of tax hikes hit tobacco products sold in the country.

The new hike raised the tax levied on the sale of tobacco products by 10 percent.

The tax hike is not an isolated measure, but the second round of four planned annual tax hikes.

It is estimated that following the tax hike, the price of an average pack of cigarettes will now be between NZD 27 and NZD 30 per pack.

The New Zealand Treasury believes that the 10 percent increase in the tax rate will lead to a reduction in tobacco consumption levels of up to 5 percent, and a subsequent 2.5 percent reduction in the number of active smokers in the country.

Alongside helping people quit smoking, it is expected that the price increases will also lead to a greater number of youths choosing not to take up smoking at all.