Taxed to the Ashes: Tobacco tax driving illicit market

Commenting on the New Zealand Herald’s front-page story on organized crime groups making millions on smuggled tobacco and cigarettes, Taxpayers’ Union executive director Jordan Williams says:

“Is it not surprising one in four cigarettes smoked in New Zealand is illegally imported – New Zealand taxes tobacco harder than just about anywhere else in the world, making it highly profitable for criminal enterprises."

“This explosion in black market tobacco proves what we have long said: New Zealand’s sky-high tobacco tax, combined with lenient penalties, makes us an obvious target for international organised smuggling groups. On a per household basis, the cost of lost revenue is up to $160 per year."

"The best way to get people off the durries is to continue New Zealand's path of successfully incentivising hard core smokers to make the switch to safer alternatives like vaping. In Australia - one of the only countries where tobacoo tax is even higher than New Zealand - vaping is not encouraged. As a result, both the illicit market is out of control and Australia continues to have much higher smoking rates."