Has tobacco tax hit its limit?
April 01, 2025 by rnz.co.nz
Has tobacco tax hit its limit?
Tobacco excise tax in New Zealand has increased over the years, leading to a rise in prices and a decline in legal consumption. Revenue dropped while seizures of illegal cigarettes at the border increased. High prices may be driving consumers to the black market. Vaping is seen as a more accessible and affordable alternative. Tax has been effective in reducing smoking rates but is becoming burdensome for low-income households. Strategies to make safer alternatives like vaping more affordable are crucial. The impact of high taxes on the smoking population and illicit tobacco consumption needs continued evaluation to balance public health goals with social consequences.
8.30% of the adult population are current smokers. There are approximately 444,279 current smokers in New Zealand.
SOURCE: GSTHR
