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New rates for tobacco and tobacco products

09.31am 08 December 2017

The annual indexation increase to excise and excise-equivalent duty rates together with a separate 10% increase will take place on 1 January 2018.

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 2017.

In addition to the annual indexation increase, the duty rates also increase by 10 percent. This is the second of the four 10 percent increases 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 2017 (PDF 142 KB).

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


$1,177.87 per kilo tobacco content (KTC)

$826.58 per 1,000 cigarettes


Smoking tobacco, homogenised or reconstituted tobacco $1,177.87 per kilo tobacco content (KTC)
Other tobacco products, eg snuff, cigars, cheroots and cigarillos $1,033.20 per kilo tobacco content (KTC)

Tobacco and tobacco products removed from a licensed manufacturing area or imported after midnight on 31 December 2017 will be subject to the new rates.

For further information, please contact Customs on 0800 428 786 (0800 4 CUSTOMS).