Off the wire
• Russia, EU can resolve all existing problems: Putin  • Feature: Play calculated to improve China's math classes  • South Sudan restricts exports of timber, charcoal, fish  • Zimbabwe pardons 2,000 inmates to ease jail congestion  • China, New Zealand vow to further boost bilateral relations  • DR Congo ruling party, opposition to hold parallel rallies over president's mandate  • Economic Watch: Yuan's rebound eases depreciation concerns  • Hebei province to slash more iron, steel production  • Roundup: Global environment assembly renews commitment to green, inclusive growth  • Furnace explosion in E. Thailand injures 10  
You are here: 　 Home

Tobacco tax rises to sting New Zealand smokers in their wallets

Xinhua, May 26, 2016 Adjust font size:

Taxes on cigarettes and tobacco will rise by 10 percent a year for the next four years, the New Zealand government said Thursday, restating its goal of wiping out smoking by 2025.

"Raising the price of tobacco is the single most powerful tool to reduce smoking. All smokers will face the price rises. The more they smoke, the more they pay. The more they pay, the greater the incentive to quit," Associate Health Minister Peseta Sam Lotu-Iiga said in a statement.

"Previous excise increases reduced per capita tobacco consumption by around a quarter and prompted thousands of smokers to quit, and we're not stopping there. Raising the tobacco excise saves lives," said Lotu-Iiga.

An estimated 4,500 to 5,000 New Zealanders died from smoking-related illnesses each year and 15 percent of adults - or 550,000 people - smoked daily.

The excise increase was part of a comprehensive suite of measures intended to help make New Zealand smoke-free by 2025.

The price of a standard pack of 20 cigarettes would likely rise from around 20 NZ dollars (13 U.S. dollars) now to around 30 NZ dollars (20 U.S. dollars) in 2020.

The changes were expected to generate an extra 425 million NZ dollars (285.38 million U.S. dollars) in tax revenue over the next four years.

Health advocates and anti-smoking campaigners welcomed the move, but cigarette firms and anti-tax lobbyists said the move would encourage crime and a black market in tobacco. Endit