Kathy Costello, New Zealand’s Deputy Minister of Health, cut the Heated Cigarette Products (HTP) excise tax, whose excise tax rate was reduced by 50 percent, effective July 1. But the move has raised questions from the Ministry of Public Health.
NZ New Zealand Deputy Health Minister Casey Costello reported on July 18th. (Casey Costello) Heated cigarette products have reduced (HTP) excise duty in a move designed to make them a more attractive alternative to smoking.
Costello is also the Secretary of Customs. She has reduced the excise tax rate on tobacco products by 50 percent, effective July 1st. The decision has been posted on the customs website.
Radio New Zealand declined to interview Costello. (RNZ) interview, her spokesman said she took measures to reduce the cost of these products and encourage smokers to switch to safer alternatives.
But Janet Hoek, a professor of public health at the University of Otago, for the RNZ. The move seems to favor the interests of the tobacco industry.
- “This is an outcome that tobacco companies would very much like to see, and it is not what the Department of Health is recommending.” This is a proposal that is in the interests of the tobacco industry.”
This is an outcome that the tobacco companies would very much like to see, and it’s not the opinion of the Department of Health. The proposal is clearly in the interests of the tobacco industry.
Cigarette giant Philip Morris (PMI) has lobbied for a cut in the HTP excise tax and told the Tax Working Group in 2018 that the government should “set a tax rate on heated cigarette products that is well below the tax rate on cigarettes”.
In an RNZ statement. Costello said vapes were a successful smoking cessation tool and she wanted to see if HTP could also be a useful smoking cessation device.
- “Vapes are not for everyone. Some people trying to quit have tried many times. HTTP has similar risks to vapes and is currently legally available so we are testing the impact of reducing the excise duty on these products on quitting smoking.”
According to documents released by the Department of Health. Costello also stipulated a recommendation for HTP deregulation, which was opposed by the Health Department.
- “There is no evidence to support its use as a smoking cessation tool. We do not recommend relaxing the way HTP is promoted. It could exacerbate current concerns about youth use and nicotine addiction.”
Earlier this year, the government scrapped Labor’s smoke-free program. Which Ministry of Health officials had described as an “end game” for New Zealand’s tobacco industry. The measures reduced tobacco retailers from 6,000 to 600. The nicotine content of tobacco would be reduced by 95 percent, and tobacco’s smokeless generation would be strictly prohibited from being sold to people born after 2009.
Costello said she is committed to the 2025 smoke-free goal and is considering whether to allow the sale of oral nicotine products, such as snuff and nicotine pouches, to help meet that goal.
According to a Health Department document. Costello recommended that a March Cabinet committee “allow in principle the sale of smokeless tobacco and nicotine products that are significantly less harmful than smoking.”
But the health department warned Costello against selling snuff and nicotine pouches.
- “In general, we do not recommend expanding the range of nicotine products that can be sold in New Zealand. Additional products may exacerbate current concerns about nicotine addiction in young people, but the revenue is small.”
- “Currently, there is no evidence to support its use as a harm reduction alternative to smoking or its effectiveness in smoking cessation. There is evidence that they are sold to children in other countries, which is associated with nicotine dependence and addiction. Children, adolescents, and non-smokers are known to be at high risk.”
In response to the RNZ’s statement, Costello was more cautious about nicotine pouches than described in the Cabinet Committee paper.
- “I’m concerned about nicotine pouches because it seems to be aimed at young people…”
The assistant health minister said she would continue to look for effective and safe alternatives to smoking products.
- “If there are smokeless cigarettes or nicotine products that are significantly less harmful than smoking, i.e. the risks are similar to e-cigarettes, then I hope they can help us quit smoking and make recommendations, and we should find a balance that we don’t want young people to be addicted to nicotine. New Zealand was late to the game in regulating e-cigarettes, which has led to out-of-control e-cigarette use among youth.”
Big tobacco companies have now turned to nicotine pouches as an alternative revenue source.
In 2022, PMI spent 270 acquiring a Swedish match company that made ZYN nicotine pouches.
There are VELO and British American Tobacco LYFT nicotine pouches (BAT) have lobbied the government to legalize this product.
The New Zealand Government’s report on the Tobacco Free Plan submitted in 2021 stated that
- “By failing to bring smokeless oral nicotine products under the same regulatory framework as e-cigarettes. The Government has missed an important opportunity to promote Smokefree 2025.”
Reference：
【1】 Associate Health Minister Casey Costello orders 50% cut to excise tax on heated tobacco products
