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Excise Duties Guide — Alcohol, Tobacco, and Fuel Excise Tax in NZ

the excise duties in New Zealand. The guide covers the excise duty on the alcohol (the beer, the wine, the spirits), the tobacco products (the cigarettes, the tobacco), and the petroleum fuels (the petrol, the diesel), along with the duty rates, the annual indexation, and the customs import duty.

Alcohol Excise Duty

The excise duty on the alcohol in New Zealand is based on the volume and the alcohol content. The duty rates for the 2025-26 year include: the beer — $0.4871 per litre for the beer up to 4.35% ABV and $0.99 per litre for the stronger beer, the wine — $3.47 per litre (the "table wine" at the 14% ABV), and the spirits — $65.15 per litre of the pure alcohol. The excise duty is indexed annually (the adjustment on 1 July based on the CPI increase). The excise duty is payable by the manufacturers and the importers of the excisable goods.

Tobacco and Fuel Excise

The tobacco excise duty in New Zealand is among the highest in the OECD. The duty rate is approximately $1.46 per cigarette ($29.20 per pack of 20) plus the GST. The tobacco excise is indexed annually (the "CPI + 10%" indexation for the years 2021-2026). The fuel excise duty (the "petrol excise") is approximately $1.10 per litre for the petrol and $0.72 per litre for the diesel (plus the GST). The fuel excise was reinstated from 1 July 2024 after the temporary reduction in 2022-2023. The regional fuel tax applies in the Auckland region at $0.115 per litre.