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

Product | BAT Launches glo Hyper pro+ in Japan, Upgrading the Hyper Platform With Faster Start and Smart Device Management
Product | BAT Launches glo Hyper pro+ in Japan, Upgrading the Hyper Platform With Faster Start and Smart Device Management
British American Tobacco Japan (BAT Japan) has introduced glo Hyper pro+, an upgraded device within the existing glo Hyper platform. The device adds QuickStart™ rapid heating technology, an EasyView™ display and maintenance notification features to improve daily usability. Launched in Japan on July 13, 2026, glo Hyper pro+ maintains compatibility with existing Hyper-format tobacco sticks, including neo, Lucky Strike and KENT.
Jul.30
China Tobacco Supply-Chain Leader Huabao’s Three-Way Transformation Takes Hold as Overseas Revenue Jumps 216%, Non-Flavor Businesses Reach 42.2% and the Company Expands Into Global Next-Generation Tobacco Supply Chains
China Tobacco Supply-Chain Leader Huabao’s Three-Way Transformation Takes Hold as Overseas Revenue Jumps 216%, Non-Flavor Businesses Reach 42.2% and the Company Expands Into Global Next-Generation Tobacco Supply Chains
Huabao’s H1 2026 results show the company advancing across three connected fronts: international expansion, entry into next-generation tobacco supply chains and diversification beyond its traditional tobacco-related base. Overseas revenue rose 216.08% to CNY 96.02 million, while non-flavor businesses reached 42.2% of total revenue. Huabao also said it had entered the supply chains of leading global tobacco customers, as its nutrition, food ingredient, fragrance and personal-care businesses gained ground in Europe, Southeast Asia, Australia and New Zealand. However, adjusted net profit increased only 2.78%, and next-generation tobacco revenue was not separately disclosed, showing that the transformation is reshaping revenue and customer exposure but has yet to translate fully into underlying earnings.
Aug.28
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Philip Morris Japan (PMJ) has expanded the ZYN by IQOS oral tobacco pouch portfolio in Japan with four new ZYN Strong products, adding a third intensity level alongside the existing Low and Medium ranges. The Strong series first entered selected duty-free channels in Japan on July 1, 2026, before expanding to IQOS stores, the ZYN Online Store and selected tobacco retailers from August 18. The expansion increases the Japanese ZYN by IQOS lineup from eight to 12 products.
Aug.20
Product | HQD SiSA 80K Enters the U.S. Market With a Hookah-Inspired Approach to the High-Capacity Disposable Segment
Product | HQD SiSA 80K Enters the U.S. Market With a Hookah-Inspired Approach to the High-Capacity Disposable Segment
The HQD SiSA 80K Hookah Disposable Vape has appeared across U.S. and cross-border online retail channels. The device comes prefilled with 28ml of e-liquid, uses a 5% nicotine salt configuration and carries a brand claim of up to 80,000 puffs. Beyond puff count, the product differentiates itself through hookah-inspired features including adjustable airflow, a flowing-water sound effect and flavor options associated with traditional hookah consumption.
Aug.18
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
The Dutch Food and Consumer Product Safety Authority, known as the NVWA, seized more than 277,000 illegal vapes near Rotterdam and nearly 150,000 boxes of nicotine pouches in Utrecht and Rotterdam, calling them the largest batches of such products it has found to date. Video footage released by the NVWA shows some cartons in the warehouse bearing the “AL FAKHER / الفاخر” name, though the agency did not identify brands.
Jul.10
Russian Strikes Destroy JTI and Imperial Brands Ukraine Warehouses, With Losses Reaching Tens of Millions of Hryvnias
Russian Strikes Destroy JTI and Imperial Brands Ukraine Warehouses, With Losses Reaching Tens of Millions of Hryvnias
According to Ukrainska Pravda, Russian strikes on the Kyiv region during the night of Aug. 4-5, 2026, damaged warehouses storing products of Japan Tobacco International (JTI) and Imperial Brands Ukraine. JTI said a finished goods warehouse in Kyiv Oblast was destroyed, with no employees injured, and that it did not expect disruptions to retail supplies. Imperial Brands Ukraine said products stored at warehouses of distributors and retail partners were affected and estimated losses from the strikes at “tens of millions of Ukrainian hryvnias” (roughly hundreds of thousands of U.S. dollars).
JTI
Aug.07