New rates for tobacco and tobacco products

The annual indexation increase to excise and excise-equivalent duty rates together with a separate 10 percent increase will take place on 1 January 2019.


The annual indexation increase is based on the movement in the All Groups Consumers Price Index (excluding credit services) over the 12-month period to 30 September 2018.

In addition to the annual indexation increase, the excise duty rates will also increase by 10 percent. This is the third of the four 10 percent increases announced in the 2016 Budget and legislated for in the Customs and Excise Act 2018.

The new rates are those set out in the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation and Separate 10% Increase) Amendment Order 2018.

The new rates are summarised as: 

Tobacco products Rate of excise and excise-equivalent duty from1 January 2018 (GST excluded)

Manufacture cigarettes:

exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes

not exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes

 

$1,317.93 per kilo tobacco content (KTC)


$924.87 per 1,000 cigarettes

 

Smoking tobacco, homogenised or reconstituted tobacco $1317.93  per kilo tobacco content (KTC)
Other tobacco products, eg snuff, cigars, cheroots and cigarillos $1156.05  per kilo tobacco content (KTC)

Tobacco and tobacco products removed from a licensed manufacturing area or imported after midnight on 31 December 2018 will be subject to the new rates.

If you need further information, please contact Customs on 0800 428 786 (0800 4 CUSTOMS) or refer to Excise on the Customs’ website.

The Allowances and Charges page on the Customs website will be updated with the new excise rates for specific products on 1 January 2019.