Lower limits for duty free tobacco

Non-tradable goods and services increased two per cent on the back of cigarette and tobacco prices

cigarettesNew duty free limits are now in place for tobacco products, bringing New Zealand’s allowance in line with that of Australia.

Customs officers at the border will be enforcing the new lower limits from November 1.

Travellers who bring more than 50 cigarettes or 50gm of cigars or roll your own tobacco across the border will now have to pay GST and duty.

The tobacco gift concession has also been removed.

“The change has been well signalled and people will have the opportunity to declare and discard excess tobacco on arrival. People who don’t must pay the additional GST and duty, or face being fined, having their tobacco seized, and potentially even face prosecution,” Nicky Wagner said.

To cope with the expected short term increase interceptions of tobacco, customs has received $2.7 million this year and $420,000 for subsequent years, Wagner said.

The reduction in the duty free tobacco limit is a further step towards reducing harm due to smoking, and making NZ effectively smoke free by 2025.

Additional revenue for the government through the new duty free tobacco limit is forecast to be $50 million.

 

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