New excise duty rates for tobacco products from 1 January 2026
The annual indexation increase to excise and excise-equivalent duty rates will take place on 1 January 2026.
The annual indexation increase is based on the movement in the Consumers Price Index All Groups (less credit services) over the 12-month period to 30 September 2025. It equates to a 2.96% increase in duty rates.
The new rates are summarised in the table below.
|
Tobacco Product |
Current rate of excise and excise-equivalent duty (excl. GST) |
Rate of excise and excise-equivalent duty from 1 January 2026 (excl. GST) |
|
|---|---|---|---|
|
Cigars, cheroots and cigarillos |
$1,589.96 per kilo tobacco content (KTC) |
$1,637.09 per KTC |
|
|
Manufactured cigarettes |
exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes |
$1,812.61 per KTC |
$1,866.34 per KTC |
|
not exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes |
$1,272.01 per 1,000 cigarettes |
$1,309.71 per 1,000 cigarettes |
|
|
Water pipe tobacco |
$271.89 per kilogram |
$279.95 per kilogram |
|
|
Other smoking tobacco. Homogenised or reconstituted tobacco (pipe or cigarette). Products containing reconstituted tobacco intended for inhalation without combustion (other than products for use with tobacco heating systems). |
$1,812.61 per KTC |
$1,866.34 per KTC |
|
|
Heated Tobacco Products |
Products for use with tobacco heating systems containing reconstituted tobacco |
$906.30 per KTC |
$933.16 per KTC |
|
Products for use with tobacco heating systems containing other than reconstituted tobacco |
$794.97 per KTC |
$818.53 per KTC |
|
|
Other tobacco products (eg, snuff) |
$1,589.96 per KTC |
$1,637.09 per KTC |
|
The Legislative Instrument that provides for new rates as set out in the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation) Amendment Order 2025 (PDF, 226 KB)
Tobacco and tobacco products removed from a licensed manufacturing area or imported after midnight on 1 January 2026 will be subject to the new rates.
If you need further information, please contact Customs on 0800 428 786 (0800 4 CUSTOMS).
The Ministry of Health is continuing to monitor the impact of the reduced excise rates on Heated Tobacco Products.
The Allowances and Charges page on the Customs website will be updated with the new excise rates for specific products in January 2026.