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New excise duties rates for tobacco and tobacco products

12.00am 24 November 2016

The annual indexation increase to excise and excise-equivalent duty rates will take place on 1 January 2017.

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 2016.

In addition to the annual indexation increase, the duty rates are also increased by 10 percent. This is the first of the four 10% increases that was announced in the 2016 Budget and legislated for in the Customs and Excise Act 1996.

The new rates are those set out in the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation and Separate 10% Increase) Amendment Order 2016.

The new rates are summarised as:

Tobacco products Rate of excise and excise - equivalent duty from 1 January 2017

Manufacture cigarettes:

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

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


$1,051.83 per kilo tobacco content (KTC)

$738.13 per 1,000 cigarettes

Smoking tobacco, homogenised or reconstituted tobacco $1,051.83 per kilo tobacco content (KTC)
Other tobacco products, eg snuff, cigars, cheroots and cigarillos $922.64 per kilo tobacco content (KTC)

Tobacco and tobacco products removed from a licensed manufacturing area or imported after midnight on 31 December 2016 will be subject to the new rates.

If you need further information, please contact Customs on 0800 428 786 (0800 4 CUSTOMS).