New excise duty rates for tobacco products, cigarettes and heated tobacco products from 1 January 2025
10.18am 29 November 2024
The annual indexation increase to excise and excise-equivalent duty rates will take place on 1 January 2025.
The annual indexation increase is based on the movement in the Consumers Price Index All groups less credit services subgroup over the 12-month period to 30 September 2024. It equates to a 2.23 percent increase in duty rates.
The current 50 percent reduction in excise and excise-equivalent duty rates for heated tobacco products (HTPs) have also been made permanent and will be indexed at the rate of 2.23 percent on 1 January 2025. The making permanent of the reduction in excise and excise-equivalent duty rates for HTPs, and the indexation increase to the new rates, are made under the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation) Amendment Order 2024.
The new rates are summarised in the table below and set out in the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation) Amendment Order 2024.
|
Tobacco Product |
Current rate of excise and excise-equivalent duty (excl. GST) |
Rate of excise and excise-equivalent duty from 1 January 2025 (excl. GST) |
|
|
Manufactured cigarettes |
exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes |
$1,773.02 per kilo tobacco content (KTC) |
$1,812.61 per kilo tobacco content (KTC) |
|
not exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes |
$1,244.23 per kilo tobacco content (KTC) |
$1,272.01 per 1,000 cigarettes |
|
|
Other manufactured tobacco and “homogenised” or “reconstituted” tobacco not used with tobacco heating systems |
$1,773.02 per kilo tobacco content (KTC) |
$1,812.61 per kilo tobacco content (KTC) |
|
|
Other tobacco products (eg, snuff, cigars, cheroots and cigarillos) |
$1,555.23 per kilo tobacco content (KTC) |
$1,589.96 per kilo of tobacco content (KTC) |
|
|
Water pipe tobacco |
$265.95 per kilo tobacco content (KTC) |
$271.89 per kilo |
|
|
Heated Tobacco Product (HTPs) |
Temporary Reduced Rates (in effect from) 1 July 2024 to 31 December 2024 |
Permanent excise and excise-equivalent duty rates with indexation from 1 January 2025 (excl. GST) |
|
Products for use with tobacco heating systems containing reconstituted tobacco |
$886.51 per kilo tobacco content (KTC) |
$906.30 per kilo tobacco content (KTC) |
|
Products for use with tobacco heating systems containing other than reconstituted tobacco |
$777.61 per kilo tobacco content (KTC) |
$794.97 per kilo tobacco content (KTC) |
Tobacco and tobacco products removed from a licensed manufacturing area or imported after midnight on 31 December 2024 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 on 1 January 2025.