Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Budget 2014: Duty-free tobacco limits to fall

Budget 2014: Duty-free tobacco limits to fall


Duty-free tobacco allowances will be cut as a further step towards reducing the harm caused by smoking, Associate Minister of Health Tariana Turia says.

This means that from 1 November this year, the duty-free allowance will fall from 200 cigarettes to 50 cigarettes. The new limit aligns New Zealand with the duty-free tobacco concession that has been in place in Australia since 2012.

“Although it’s pleasing to see that fewer young people are taking up smoking, it still causes up to 5,000 premature deaths in New Zealand every year,” Mrs Turia says.

“The Māori Party has been instrumental in a number of Government initiatives aimed at reducing smoking - including a rise in the tobacco excise tax.

“But it is an anomaly that on the one hand we’re increasing the price, and on the other hand we’re offering a duty-free allowance on 200 cigarettes to every adult arriving at our borders.”

The price differential between retail tobacco and duty-free tobacco will continue to grow with two further 10 per cent increases in the rate of excise scheduled over the next two years, Mrs Turia says.

“I considered recommending that the duty-free allowance be removed entirely, and although that would be consistent with the Government’s goal of making New Zealand effectively smoke-free from 2025, it would not be practical.

“Completely removing the duty-free concessions would mean that smokers, who might have a packet or two of cigarettes on them when going through Customs, had to either dump them or declare them and pay duty. If they did neither, they would risk prosecution and seizure of the goods.

“Either way, it would have potentially created considerable compliance costs for Customs in processing passengers at busy airports. Consequently, the Cabinet has agreed to reduce, rather than remove, the allowance.”

The new duty-free tobacco limit is forecast to raise $50 million in extra revenue over a full financial year.

“It makes sense for us to match Australia’s duty-free limits for tobacco, given that nearly half of all our inbound passengers come from, or via, Australia,” Mrs Turia says.

Along with the reduction in the duty-free concession, from 1 November tobacco will be removed from the gift concession that currently allows gifts sent from overseas to be free of duty and GST when they arrive in New Zealand, providing they exceed no more than $110 in total value.

Budget 2014 will include additional funding for New Zealand Customs Service of $2.7 million in 2014/15, and $420,000 in the following years to assist with implementation of the new rules.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Election Day: National Win

With all votes counted National and John Key have won a third term and are close to being able to govern alone if they so choose.

Key has indicated he will still reach out to form a Government with ACT, United Future and Maori Party.

National ended the night on 48 percent, Labour 24.6 and the Greens 10. Though special votes might change the margins it is certainly a third term victory for Key defying the political gravity which usually hits parties seeking a third term. Increasing National’s party share is a remarkable political achievement...More>>

Overall Results | Live Results | Predictions |

 


Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news