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

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news