Tougher penalties to stop illicit tobacco
New Zealand’s Cabinet has approved stricter penalties and new offences to combat the illicit tobacco trade, aiming to disrupt organised crime and protect tax revenue.
Associate Minister of Health Casey Costello announced Cabinet-approved legislative changes to strengthen enforcement against illegal tobacco, citing links to organised crime and lost tax revenue. Current penalties were deemed insufficient to address the scale of the issue, prompting cross-agency reforms. The changes target unlawful packaging as a key indicator of illicit imports, enabling Health New Zealand, Police, Customs, and the Ministry of Health to better coordinate enforcement. Amendments to the Smokefree Environments and Regulated Products Act 1990 will formalise these measures once enacted.
The Customs and Excise (Border Security) Amendment Bill, introduced to Parliament, increases the maximum prison term for tobacco smuggling and excise evasion from six months to seven years. This aligns with broader efforts to deter illicit trade and protect government revenue from tobacco excise. The changes follow concerns raised by Australia’s experience, where illicit tobacco contributed to a significant decline in excise collection. Costello emphasised the need to act swiftly to prevent similar impacts in New Zealand.
New offences and penalties will target the unlawful packaging and distribution of tobacco, making it easier for enforcement agencies to identify and disrupt black-market operations. The reforms aim to address gaps in the current regulatory regime, which previously lacked the tools to tackle the seriousness of illicit tobacco trade. Health New Zealand and other agencies will receive enhanced powers to enforce compliance and penalise offenders.
Cabinet’s approval of these legislative changes reflects a coordinated government response to reduce the availability of cheap illegal cigarettes. The reforms are designed to support public health objectives by discouraging smoking while ensuring legitimate businesses and tax revenue are protected. Costello stated that the measures will strengthen cross-agency collaboration to identify, disrupt, and penalise illicit activity more effectively.