Associate Health Minister Tariana Turia announced tobacco excise taxes would increase by 10 per cent a year in each of the next four years. The move would give smokers a financial incentive to quit and put young people off smoking, she said. The government had earlier considered increasing the cost of a pack of cigarettes to NZD 100, which was rejected.
Today's tax hikes followed a 40 per cent increase in tobacco excises since April 2010. The first of the new tax hikes would take place on 1 January 2013.
The measure is part of the government's goal of making New Zealand tobacco smoke-free by 2025. Another measure, a display ban for retailers, will come into effect in July.
The 2012 budget also allocated NZD 20 million for a new fund, Pathway to Smoke-Free 2025, which would be used to create programmes to discourage smoking uptake. (pi)