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New excise duty rates for tobacco and tobacco products from 1 January 2023

The annual indexation increase to excise and excise-equivalent duty rates will take place on 1 January 2023.


The annual indexation increase is based on the movement in the All Groups Consumers Price Index (less credit services) over the 12-month period to 30 September 2022.

The new rates are those set out in the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation) Amendment Order 2022 (PDF 225 KB).

The new rates are summarised as:

Tobacco product

Rate of excise and excise-equivalent duty from 1 January 2023 (excl. GST)

Manufactured cigarettes exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes $1,678.29 per kilo tobacco content (KTC)
not exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes $1,177.75 per 1,000 cigarettes
Smoking tobacco, homogenised or reconstituted tobacco $1,678.29 per kilo tobacco content (KTC)
Other tobacco products, eg, snuff, cigars, cheroots and cigarillos $1,472.14 per kilo tobacco content (KTC)
Water pipe tobacco $251.74 per kilo

Tobacco and tobacco products removed from a licensed manufacturing area or imported after midnight on 31 December 2022 will be subject to the new rates.

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

The Allowances and Charges page on the Customs website will be updated with the new excise rates for specific products on 1 January 2023.