New Zealand Considers Halting Taxes on Heated Tobacco Products

Casey Costello, New Zealand's Minister, is exploring a cigarette tax freeze and removing the excise tax on smokeless tobacco products. This tax relief would specifically apply to Heated Tobacco Products (HTPs), which are manufactured by heating tobacco to produce vapor rather than burning it. HTPs typically entail inserting and heating tobacco sticks in an e-cigarette.

These tobacco sticks fall under the 'other tobacco' category and are taxed at the same rate as typical smoked tobacco. Minister Costello supports reducing tariffs on safer alternatives, but states the absence of strong evidence demonstrating that heated tobacco products effectively assist people stop smoking or minimize harm for those who do switch.