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.