Center for Tobacco Control Research and Education

For over 100 years taxation has been a common method of revenue collection in New Zealand and the major policy instrument for reducing tobacco use since the comprehensive tobacco control programme began in 19851. Tobacco tax rates have been raised once or twice a year since that time2. A comparison of cigarette prices in relation to income in the year 2000 showed that in New Zealand cigarettes were more costly than in 22 Organisation for Economic Co-operation and Development (OECD) countries, except for the United Kingdom3. During the 1986– 1992 recession, the Government increased the tobacco tax to raise revenue.