Smokers See New Tax Hike

January 6, 2012 New Zealand Taxation

Tobacco taxes in New ZealandTaxes on cigarettes have once again gone up, as part of the government’s three planned rate hikes.

As of January 1st the excise tax on cigarettes and tobacco has been increased, in a move that the government claims will lead to more people quitting smoking.

The excise taxes rose by 14.6 percent on all tobacco products. The tax can only be applied to new products purchased by merchants after January 1st. However, the Consumer institute has already received several complaints, alleging that retailers are marking up their old stocks.

The latest increase is the third hike in excise taxes since June 2010. According Quitline New Zealand the repeated tax increases have had a marked positive effect on the number of New Zealanders aiming to kick the habit, with a 93 percent increase in the number of New Zealanders seeking assistance with quitting over 2011.

Under the new rate, cigarettes face an excise duty of up to 63 percent.

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