The annual indexation increase to excise and excise-equivalent duty rates together with a separate 10 percent increase took place on 1 January 2018.
The annual indexation increase is based on the movement in the All Groups Consumers Price Index (excluding credit services) over the 12-month period to 30 September 2017. In addition to the annual indexation increase, the duty rates also increase by 10 percent. This is the second of the four 10 percent increases announced in the 2016 Budget and legislated for in the Customs and Excise Act 1996.
The new rates are those set out in the Excise and Excise-equivalent Duties Table (Tobacco Products Indexation and Separate 10% Increase) Amendment Order 2017.
|
Tobacco product |
Rate of excise and excise-equivalent duty from 1 January 2018 (GST excluded) |
| Manufactured cigarettes – exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes | $1,177.87 per kilo tobacco content (KTC) |
| Manufactured cigarettes – not exceeding in weight 0.8 kg actual tobacco content per 1,000 cigarettes | $826.58 per 1,000 cigarettes |
| Smoking tobacco, homogenised or reconstituted tobacco | $1,177.87 per kilo tobacco content (KTC) |
| Other tobacco products, eg snuff, cigars, cheroots and cigarillos | $1,033.20 per kilo tobacco content (KTC) |
