High Tobacco Controls and Retail Consolidation in New Zealand Parliament Debate

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New Zealand’s Parliament approved a sweeping tobacco control law on a Tuesday, moving to phase out sales gradually starting in 2027. The reform positions New Zealand as the second country after Bhutan to implement a full ban on tobacco products.

The policy, unveiled by the government in December of the previous year, stipulates that individuals born on or after January 1, 2009 will face a generation-wide prohibition. If they are 13 now and reach 18 in 2027, they will not be legally allowed to purchase tobacco in the country.

The measure, supported by the Labour Party led by Prime Minister Jacinda Ardern, passed with 76 votes in favor and 43 against.

“This law accelerates progress toward a freer future”, Deputy Health Minister Ayesha Veral stated. The policy also aims to lower nicotine levels in tobacco products as part of the reform.

Veral noted that thousands of people could live longer and healthier lives, and that the health system could save billions in future cancer, heart disease, and tobacco-related amputations costs. The deputy also indicated the state would reduce spending on treatment due to tobacco-related illnesses.

The legislation requires a significant consolidation of the tobacco retail sector. It currently leaves around 90 percent of the country’s 6,000 stores with tobacco licenses, but the new law envisions a cap of no more than 600 tobacconists by year end.

In a government study, 25 stores that have already stopped selling cigarettes and other tobacco products reported that 88 percent experienced neutral or positive financial effects.

Survey data show that only 8 percent of New Zealand adults smoke daily, a drop from 9.4 percent in 2021 and well below levels from a decade ago.

Global comparisons show adult smoking rates vary widely. OECD data from 2019 illustrate differences such as Turkey with 28 percent, Chile 24.5 percent, China 21.5 percent, Spain 19.8 percent, Finland 13 percent, the United States 10.9 percent, and Norway at 9 percent, with Costa Rica around 4.2 percent, among others.

High tobacco taxes

Over the past decade New Zealand has raised tobacco taxes substantially, with increases totaling about 165 percent. A typical pack now costs at least NZ$30, which is about US$19 or €18.

The main opposition parties, National and ACT New Zealand, voted against the bill.

The National party, led by a familiar face in parliamentary discussion, argued that the policy would reduce tobacco consumption later but also shorten the number of tobacconists, potentially hurting small businesses that rely on tobacco sales. Critics framed the law as a broad shift with economic consequences for vendors and local communities.

The Maori Party supported the proposal but questioned whether electronic cigarettes should be included in the ban, citing potential public health trade-offs and policy gaps.

Some critics warn that the ban could drive tobacco smuggling or illicit markets, a risk often discussed in policy debates around strict prohibitions.

In a related note, Malaysia began debating a similar bill last July, considering a ban on tobacco sales to anyone born on or after January 1, 2007, signaling a regional interest in aggressive tobacco control measures. [Attribution: Parliament press briefing]

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