New Zealand is to reduce the duty-free allowances for tobacco and raise its excise duty in a move described as an attempt to reduce the amount of smoking. The move will also increase government revenue from excise tax on tobacco, at least in the short term, though this extra revenue may decrease if the measure achieves its stated aim of reducing the amount of smokers in New Zealand.
With effect from November 1 2014, the exempt allowance from duty on cigarettes will be cut from 200 to 50. Tobacco products entering New Zealand as gifts will not be eligible for the gift allowance. On top of this two more 10 percent excise duty increases are to be put through in the next two years.
