Pressure mounts to slash duty free tobacco allowance in New Zealand

NEW ZEALAND. Duty free tobacco allowances face a mounting threat as politicians and anti-tobacco lobbyists crank up the pressure for New Zealand to follow the example of neighbouring Australia and slash the number of cigarettes that can be brought into the country.

Associate Health Minister Tariana Turia plans to propose to Cabinet in the coming months a revision to the law permitting a carton of cigarettes to be bought duty free – urging that change be implemented as early as Christmas this year.

According to a front-page report in the Herald on Sunday newspaper yesterday (pictured below), health officials are examining three options: lowering the allowance from 200 cigarettes to 50, to match Australia’s regime; permitting only a single, open pack of up to 19 cigarettes; or completely removing the duty free allowance.

Since Australia reduced its duty free tobacco allowance on 1 September 2012, some politicians and commentators in New Zealand have considered it only a matter of time before the country follows suit.

Reduced Australian allowances have hit duty free spending at New Zealand airports, with Auckland Airport citing it as a factor behind a softening of passenger spend rates in the fourth quarter of 2012.

The New Zealand government is also planning to follow Australia’s lead and introduce plain packaging for cigarettes, possibly within 2014.

British American Tobacco expressed disappointment with the Turia’s proposals, telling local media that it would penalise consumers, including tourists and international travellers, who are important to New Zealand’s economy.

NOTE: We will assess the merits of Associate Health Minister Tariana Turia’s arguments in this week’s edition of The Moodie Report e-Zine.

The article as published online on The New Zealand Herald yesterday
New Zealand may also introduce strict new rules on tobacco display, following the precedent set by neighbouring Australia (pictured: Nuance Australia’s store at Melbourne Airport), according to local reports
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