From:
Meredith Ackrill
To:
Christine Stevenson; BARGH Richard
Cc:
Ministerial Servicing
Subject:
Meeting on tobacco excise indexation
Date:
Tuesday, 28 November 2023 10:49:26
Mōrena Christine and Richard
The meeting to discuss tobacco excise indexation has been confirmed for 3.30-4pm today. This
place is a rabbit warren so I’ll meet you at reception and bring you up.
Richard – could I please get the revised paper asap to give to the Minister before the meeting?
Ngā mihi
Meredith
Meredith Ackrill
Private Secretary – Customs | Office of Hon Casey Costello
Minister of Customs
Minister for Seniors
Associate Minister of Immigration
Associate Minister of Health
Associate Minister of Police
DDI: Section 9 (2) (a) OIA
Email: [email address] Website: www.Beehive,govt.nz
Private Bag 18041, Parliament Buildings, Well ngton 6160, New Zealand
under the Official Information Act 1982
Released
From:
BIGNELL Warwick
To:
DICKSON Denise; KYNE Jacob; LAKE Kim; Ministerial Servicing
Cc:
TAYLOR Nicole; PRICE Gabriella
Subject:
FW: Tobacco Indexation Papers
Date:
Tuesday, 28 November 2023 12:16:30
Attachments:
Aide Memoire Tobacco Indexation 281123 FINAL to Minister.docx
CAB Paper tobacco indexation 281123 FINAL to Minister.docx
CCS221002 - Order in Council Excise and Excise-equivalent Duties Table (Tobacco) 2023 - Goatskin.pdf
Certification Letter (November 2023) - Tobacco Indexation OIC 2024.pdf
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FYI; indexation material sent today.
As I understand it, the Minister will be briefed later today. At this stage we do still not have a
decision.
Regards
Warwick
From: BIGNELL Warwick
Sent: Tuesday, November 28, 2023 11:23 AM
To: Meredith Ackrill <[email address]>
Cc: BARGH Richard <[email address]>; MACIVER Kathryn
<[email address]>; STRICKSON Paula <[email address]>;
PRICE Gabriella <[email address]>
Subject: Tobacco Indexation Papers
Hi Meredith
Please find attached an Aide Memoire on the Tobacco Indexation for Minister Costello, with
attachments of:
1. Proposed Cabinet Paper
2. Draft Order-in-Council, to go with the Cabinet Paper
3. Certification of the Order from Customs’ Chief Legal Advisor.
Do you need me to bring the printed copy (with the Goatskin across)?
One thing added to the Aide Memoire is that usually the Minister would make an
announcement/press release when the decision has been made. Please advise if this is required
– we can send through draft material.
I am happy to discuss.
Regards
Warwick
Warwick Bignell | Senior Analyst, Revenue Policy | New Zealand Customs Service | PO Box 2218 Wellington
under the Official Information Act 1982
6140, New Zealand | Section 9 (2) (a) OIA | [email address] | www.customs.govt.nz
Connect with us:
Released
IN CONFIDENCE
AIDE MEMOIRE
28 November 2023
RPT 23/155A
EXCISE AND EXCISE-EQUIVALENT DUTIES TABLE (TOBACCO
PRODUCTS INDEXATION) AMENDMENT ORDER 2023
Cabinet in week of 27 November 2023
Action sought
Seek Cabinet’s agreement to submit the Excise and Excise-equivalent Duties Table (Tobacco
Products Indexation) Amendment Order 2023 (the Order) to the Executive Council. If signed
by the Governor-General and notified in the Gazet e by 1 December 2023, the increases to
tobacco excise wil come into force on 1 January 2024.
Speaking points
Tobacco indexation changes are regular and provided for in legislation
This paper seeks your agreement to increase tobacco excise on 1 January 2024 by 5.64%, as
provided for in the Customs and Excise Act 2018. An indexation adjustment for inflation has
been carried out for tobacco each year since 1989.
The tobacco industry expects an indexation increase in the rates and factors it into their
annual planning.
Increasing tobacco excise to reflect inflation means the price of tobacco
continues to dissuade smoking, as well as increases revenue col ected
Tobacco taxation is one of a range of measures that make up New Zealand’s comprehensive
under the Official Information Act 1982
tobacco control programme. Increasing the price of tobacco tends to reduce consumption.
To increase tobacco excise, an Order in Council must be signed by the
Governor-General in Council
To implement this change, the Executive Council needs to approve the Order, and then the
Governor-General in Council needs to sign the Order (the draft Order attached to the Cabinet
paper). The tobacco excise adjustment can only take place on 1 January 2024 under the
current legislative settings.
Released
IN CONFIDENCE
IN CONFIDENCE
If Cabinet declines the proposed adjustment, the next opportunity to adjust excise duty rates
on tobacco products by indexation wil be on 1 January 2025, to reflect inflation for the year
ending 30 September 2024. Future indexation increases cannot retrospectively include an
adjustment for inflation for the year ending 30 September 2023, without an amendment to
legislation.
To meet expected legislative timeframes, the Order must be notified in the
Gazette 28 days prior to it taking effect (or by 1 December 2023 at the latest)
Usually when an Order is made (signed by the Governor-General), 28 days are required
between the notification of the Order in the
New Zealand Gazette and the date the order takes
effect.
Communications
If you would like to issue a press release, Customs wil work with your office to prepare the
necessary material.
After the Order is gazetted, Customs will formally advise the large importers (Imperial Tobacco
NZ Ltd, British American Tobacco (NZ) Ltd, Philip Morris (NZ) Ltd, and R&S King Limited),
and Retail New Zealand of the new rates.
Advice of the new rates wil also be placed on Customs’ website and in the weekly online
newsletter
Customs Release.
Officials attending
Kathryn MacIver, Group Manager Policy and Strategy and Paula Strickson, Acting Manager,
Revenue Policy wil be available to attend if required.
Ministerial Consultation
[Minister’s office to complete]
under the Official Information Act 1982
Released
IN CONFIDENCE
NEW ZEALAND CUSTOMS SERVICE
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