New Zealand to Cut Taxes on Heated Tobacco Products
According to New Zealand Radio, New Zealand has halved the tax on heated tobacco products (HNB) to make them more attractive as an alternative to cigarettes. A spokesperson said Customs Minister Casey Costello, who ordered the tax cut, hopes the move will
According to Radio New Zealand, New Zealand has halved taxes on heated tobacco products (HTPs) to make them more attractive as alternatives to cigarettes.
A spokesperson said Customs Minister Casey Costello, who ordered the tax cut, hopes the move will encourage smokers to switch to lower-risk nicotine products.
In a statement to Radio New Zealand, Costello said vaping has been a successful smoking cessation tool, and she wants to see whether heated tobacco products can also serve as a useful quitting aid.
“Vaping is not suitable for everyone, and some people trying to quit smoking have already tried several times. Heated tobacco has a similar risk profile to vaping, and these products are currently legal, so we are testing what impact halving the excise tax on these products will have.”
Critics say the government has given in to tobacco lobbying.
In 2018, Philip Morris International, which sells the market-leading IQOS brand, told the Tax Working Group that the government should “set a tax rate for heated tobacco products well below the rate for tobacco.”
Earlier this year, the New Zealand government repealed the previous administration’s smokefree measures, which had banned the sale of tobacco products to anyone born on or after January 1, 2009, required tobacco companies to reduce the nicotine content of their products, and cut the number of tobacco retailers by 90%, among other provisions.
The current government appears more receptive to tobacco harm reduction measures advocated by the tobacco industry and others.
Costello is also reportedly considering whether to allow the sale of oral nicotine products such as snus and nicotine pouches to help New Zealand achieve its smoking reduction goals.
However, her colleagues at the Ministry of Health are said to have reservations, saying there is “insufficient evidence” that snus helps people quit smoking. “The risk of addiction to snus may be higher than for smoking. Using snus may increase the risk of certain cancers.”
The Ministry of Health said: “Overall, we do not recommend expanding the range of nicotine products sold in New Zealand. More products could intensify concerns about nicotine addiction among young people while delivering limited benefits.”
British American Tobacco, which owns the Velo and Lyft nicotine pouch brands, has been lobbying the government to legalize these products.
In a smokefree action plan report submitted in 2021, the government said: “The government’s failure to include smokeless oral nicotine products within the same regulatory framework as vaping products represents a major missed opportunity to advance the 2025 Smokefree goal.”
