Controversial New Zealand Proposal: Freezing Cigarette Tax for Three Years

Regulations by 2FIRSTS.ai
Jan.25.2024
Controversial New Zealand Proposal: Freezing Cigarette Tax for Three Years
New Zealand's deputy health minister, Casey Costello, has faced controversy over proposals to freeze tobacco taxes.

On January 25, the New Zealand Herald reported that Casey Costello, the Deputy Minister of Health for New Zealand, has put forward a series of innovative ideas for tobacco control, sparking widespread controversy. One of the proposals is to freeze cigarette taxes in order to prevent cigarettes from being affected by overall inflation.

 

Currently, the tobacco consumption tax is subjected to annual adjustments based on the Consumer Price Index (CPI). Costello is now proposing a suggestion to freeze the growth of the tobacco-related CPI for three years.

 

However, during the interview with Costello, when asked about this proposal, she stated that she hadn't considered it at all. She said, "I haven't even discussed it. It's not something I specifically sought advice on.

 

Despite stating in the interview that she did not seek any advice on the matter, the report from the Department of Health tells a different story. The report asked Costello, "Do you wish to receive recommendations regarding the freeze on tobacco-related excise for the next three years starting from January 2024?" The option "yes" on this report was circled and has been signed and confirmed by Costello on December 20, 2023.

 

Furthermore, although Costello has not confirmed that she is proposing a freeze in the increase of consumption tax, she has shown an openness to this practice.

 

She expressed, "This is a significant burden for the most vulnerable individuals in our society, as they are dependent on nicotine and yet we continuously penalize this segment of the population." She sympathizes with the freeze in this practice because we are currently dealing with a small group that is under immense economic pressure.

 

However, Janet Hoek, a professor of public health at the University of Otago, believes that this would put tobacco products in a favorable position compared to other consumer goods. She said, "This freezing measure will effectively shield tobacco from the impact of inflation." Hoek also pointed out that recently, due to the growth of the Consumer Price Index (CPI), we have seen the typical cigarette prices increase by around $2, which may be enough to make smokers consider quitting.

 

In addition, the New Zealand government has further plans for reforming smoking and e-cigarette laws, such as prohibiting the sale of tobacco among those born on or after January 1, 2009, in order to create a smoke-free generation.

 

On this basis, the Costa-Lawson Proposal aims to increase the penalties for selling e-cigarettes to minors. Currently, the fine for selling tobacco to minors is $10,000, while in other cases it is $5,000. Although no e-cigarette vendors have been prosecuted for selling to minors, it is understood that Costa-Lawson is proposing to raise the maximum fine for selling e-cigarettes to minors to $30,000.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

JTI Makes Third Bet on South Korea as Ploom AURA Enters a Market Dominated by lil and IQOS
JTI Makes Third Bet on South Korea as Ploom AURA Enters a Market Dominated by lil and IQOS
Japan Tobacco International is stepping up its heated tobacco push in South Korea with Ploom AURA. Since its official launch in April 2026, the device's limited First Edition and Glacier White version have sold out, while distribution has expanded across Seoul, Incheon, Gyeonggi Province and airport duty-free channels. The rollout marks JTI's third major attempt to build a stronger heated tobacco position in South Korea, following Ploom TECH in 2019 and Ploom X Advanced in 2024. At the group level, JT plans to invest about ¥800 billion, approximately $5 billion, in reduced-risk products from 2026 through 2028, with heated products and Ploom identified as its primary investment priority.
Aug.14
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan Industrial Co., Ltd. has filed a patent application for a cellulose-free scaffold material for nicotine pouches, proposing a combination of bioceramic material, polydextrose and sugar alcohols to replace conventional microcrystalline cellulose and cellulose derivatives. The filing aims to address issues including powdery mouthfeel, residue and limited release control, while also reducing reliance on existing cellulose-based patent portfolios. In patent examples, one fast-release formulation reached a nicotine release rate of 50% at 10 minutes and more than 90% at 20 minutes.
Sep.02
Australian Coalition Taskforce Calls for 80% Tobacco Tax Cut to Combat Illicit Market
Australian Coalition Taskforce Calls for 80% Tobacco Tax Cut to Combat Illicit Market
According to SGST on August 26, 2026, Australia’s Coalition Illegal Tobacco Taskforce released a report recommending an up to 80% cut in tobacco excise to reduce the appeal of the illicit tobacco market. The report claimed organised crime groups now control about 80% of Australia’s tobacco market and argued that high excise rates have widened the price gap between legal and illegal products. The recommendation remains a policy proposal and has not been adopted by the Australian government, which said its focus remains on enforcement, compliance and additional resources.
Aug.27
Germany Seizes 56 Pallets of Illegal Vapes, Probe Estimates €1.8 Million Tax Loss
Germany Seizes 56 Pallets of Illegal Vapes, Probe Estimates €1.8 Million Tax Loss
German authorities have seized dozens of pallets of illegal disposable vapes in a criminal investigation, with the products estimated to have caused at least €1.8 million in tax losses. The case has also raised concerns over cross-border supply chains linked to unauthorized nicotine products entering the European market.
Jul.14
PMI Q2 Call: ZYN Growth, IQOS Pricing and a Diverging Global Tobacco Market
PMI Q2 Call: ZYN Growth, IQOS Pricing and a Diverging Global Tobacco Market
Philip Morris International’s second-quarter earnings call offered new detail on its smoke-free strategy. Management said it would increase U.S. investment behind nicotine pouch brand ZYN, keep IQOS focused on volume before stronger pricing, and use SENTIA, DELIA, LEVIA, VEEV and ZYN to manage tax and regulatory pressure across Japan and Europe. Analysts from Goldman Sachs, Morgan Stanley, UBS and other firms also pressed PMI on profitability, market share, cigarette resilience and the durability of its global transformation over coming quarters.
Jul.24
Special Report | Russia, Ukraine and Belarus Launch Fresh Push to Rein in Vaping
Special Report | Russia, Ukraine and Belarus Launch Fresh Push to Rein in Vaping
Russia, Ukraine and Belarus are tightening vape regulation through different tools, from Ukraine’s stronger enforcement push and Belarus’s proposed advertising restrictions to Russia’s new GOST standard and regional sales-ban mechanism. As black-market concerns persist, some Russian experts argue that China’s tightly controlled but legalised model — built around licensing, traceability and taxation — may offer a more effective alternative to blanket prohibition.
Jul.15