New Zealand duty change sees four tonnes of tobacco up in smoke

Travelers entering New Zealand have dumped more than 4 tonnes of tobacco at ports since the government drastically cut the allowance in duty-free tobacco a year ago, Customs Manager Nicky Wagner said Tuesday.

"Passengers choosing not to pay duty dumped almost 3.8 tonnes of tobacco, almost enough to fill a 20-foot shipping container, in Customs bins at international airports," Wagner said in a statement.

"Hundreds of kilograms of tobacco sent by mail also end up as unclaimed cargo if importers don't pay the duty. This all adds to the significant quantity of tobacco that Customs destroys on a regular basis."

Almost 500 kg of tobacco per month was abandoned in the first months after the lower limit came into effect on Nov. 1 last year, but in September this year just over 250 kg was left at airports.

Travelers had the choice to declare and discard excess tobacco when they arrived or to pay the additional duty and sales tax.

Customs recorded around 10,100 transactions for people who chose to pay duty, with the total revenue collected in the year reaching 1.62 million NZ dollars (1.1 million U.S. dollars).

The government announced in May last year the cut in the allowance in duty-free tobacco to bring the country into line with Australia and as part of its campaign to make New Zealand smoke-free by 2025.

The allowance fell from 200 cigarettes to 50 cigarettes and from 250 grams of tobacco to 50 grams in line with limits set by Australia in 2012.

The government has also been steadily raising taxes on tobacco products in a move to discourage smoking, which is estimated to cause up to 5,000 premature deaths in New Zealand every year. Endit