Parliament has raised the excise tax on tobacco after going into urgency on a surprise legislative move.
Associate Health Minister Tariana Turia announced the measure just after 4.30pm on Wednesday. It was passed 118-4.
The Excise and Excise Equivalent Duties Table (Tobacco Products) Amendment Bill provides for or tobacco excise to be increased in three steps over two years.
Tax on cigarettes will rise immediately by 10% with a further 10% increase next January and a third increase of 10% in January 2012. This took the price of a packet of cigarettes to around $11 a packet from midnight.
Being hit harder is loose-leaf tobacco – an immediate 24% increase in the excise tax is to bring it into line with manufactured cigarette prices.
As with manufactured cigarettes, further rises of 10% the next two years will follow.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- How did Sealegs make a profit? David McKee Wright explains
- ‘Organisations that don’t put effort into employee engagement will be the companies of yesterday’ – Kronos' managing director Peter Harte
- In Editor’s Insight, Nevil Gibson says a New Zealander is helping to unlock the potential of Africa’s cities
- Abano CEO Richard Keys on the sped up timetable for selling the audiology stake
- Without cyber rules, business may struggle to fight back warns FireEye chief security strategist Richard Bejtlich