Tobacco Tax Guide — Excise Duty, Customs, and GST on Tobacco in NZ
the tobacco excise taxation in New Zealand. The guide covers the excise duty rates on the cigarettes and the tobacco products, the annual CPI indexation escalator, the customs duty on the imported tobacco, and the GST on the retail sales.
Excise Duty on Tobacco
The tobacco excise duty in New Zealand is among the highest in the OECD. The excise rates for the 2025-26: the cigarettes — $1.4248 per stick (including the GST), the roll-your-own tobacco — $95.17 per 50 grams, and the cigars — $529.55 per kg. The excise duty is increased by the annual CPI indexation plus the additional 5% escalator on the 1 January each year through to the 2026. The excise duty is collected at the manufacturing or the importation stage. The imported tobacco is also subject to the customs duty at the 5% ad valorem rate.
Import Restrictions and GST
The personal import of the tobacco products is restricted. The duty-free concession for the travellers: up to 50 cigarettes or 50 grams of the tobacco products (the combination equivalent). The tobacco imported above the concession limits is subject to the full excise duty, the customs duty, and the GST at 15%. The importation of the loose-leaf tobacco in the quantities exceeding the personal use limits may be treated as the commercial import requiring the Customs clearance and the excise license. The GST is applied on the total value including the excise and the customs duties. See our Excise Duties Guide → for the broader excise rules.