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

Special Report|South Korean Lawmaker Queries China Tobacco Regulator Over Synthetic Nicotine as Export-Rule Gaps Emerge
Special Report|South Korean Lawmaker Queries China Tobacco Regulator Over Synthetic Nicotine as Export-Rule Gaps Emerge
A South Korean lawmaker has asked China’s tobacco regulator to clarify rules for e-cigarettes containing synthetic nicotine amid questions over product declarations and possible tax losses. The dispute exposes gaps between Chinese export requirements and destination-market rules, while underscoring the global impact of China’s licensing and traceability policies.
Jul.10
Adani’s Mumbai Airport Duty-Free Shops Face Scrutiny Over Nicotine Pouch Sales in India
Adani’s Mumbai Airport Duty-Free Shops Face Scrutiny Over Nicotine Pouch Sales in India
An Indian investigation found that duty-free shops at Mumbai international airport operated by billionaire Gautam Adani’s business group sold nicotine pouches in breach of the law, Reuters reported, in a case that could shape how India regulates sales of new nicotine products at airport retail outlets.
Jul.08
China’s HTP Exports Fell 14.3% in H1 2026 as Russia and Belarus Accounted for 76% Lead
China’s HTP Exports Fell 14.3% in H1 2026 as Russia and Belarus Accounted for 76% Lead
In H1 2026, China’s HS 24041100 exports stood at $1.32 million, down 14.3% YoY, with volume falling 17.2% to 55.33 tons. Market distribution shifted drastically amid overall export drops. Exports to Russia and Belarus totaled $1 million, taking 76.0% of all shipments versus 29.5% in H1 2025. Belarus became the top destination with export value jumping 177.5%, while the Philippines, Singapore and Indonesia’s combined share slumped from 49.3% to 11.2%.Domestically, Yunnan led exporter registrations; Jiangsu and Shanghai were key suppliers, yet Anhui and Sichuan had no exports. Heavy concentration means order or declaration changes for Russia/Belarus greatly affect national aggregate data. The data shows customs entry points (not end markets), covering tobacco consumables only, excluding heating equipment and the complete HTP supply chain.
Aug.11
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
Spanish newspaper El Confidencial interviewed Fred Monteiro, Regional Director for Americas and Europe at British American Tobacco (BAT). Monteiro said BAT supports setting regulatory limits for nicotine products but opposes Spain’s proposed 0.99mg nicotine-per-pouch limit, arguing that such a restriction could affect adult smokers’ transition to alternatives. He said nicotine regulation should be based on scientific evidence and harm reduction principles. Monteiro also said smoke-free products now account for around 25% of BAT’s Americas and Europe business and nearly 30% of its Europe business
BAT
Jul.30
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
UK retail publication Grocery Trader has published a viewpoint article from Tolga Kilic, Commercial Director for BAT UK & Ireland, discussing the impact of illicit nicotine products on legitimate retail channels. Kilic said illegal vapes and other illicit nicotine products create competitive pressure for compliant retailers and called for stronger market controls and supply-chain oversight. The comments come as the UK advances policies including the disposable vape ban and Vaping Products Duty, creating a more complex operating environment for legal vape retailers.
Jul.28
UK Councils Seize More Than 1.3 Million Non-Compliant Vapes One Year After Disposable Ban
UK Councils Seize More Than 1.3 Million Non-Compliant Vapes One Year After Disposable Ban
One year after the UK disposable vape ban came into force, local authorities continue to seize illegal and non-compliant vaping products. FOI data compiled by nicotine retailer Northerner shows more than 1.3 million products were seized between June 2025 and May 2026, with Bolton recording the highest number of seizures and Swansea reporting the highest estimated value.
Jul.21