New Zealand Proposes Three-Year Freeze on Tobacco Tax Hikes and Considers Differential Taxation for Heated Tobacco Products

The Ministry of Health delivered a document to New Zealand First's Associate Health Minister, Casey Costello, outlining a proposal to halt annual tobacco tax hikes for three years. These taxes increase annually in tandem with inflation. This freeze would mean that the cost of cigarettes would not rise during that time, even if other costs increased. 

Casey Costello also states that heated tobacco products will be exempt from taxation, whereas smoked tobacco products will be taxed. As a result, there is discussion about whether heated tobacco products should be priced differently than traditional cigarettes because they are regarded to be less harmful, and more research and guidance are required before any choices are taken.