Associate Health Minister Casey Costello says she has no plans to cut the tax on cigarettes, after comments on radio raised concern among public health experts.

Costello told Newstalk ZB she was thinking about reviewing how the tobacco tax works across different products. She told RNZ separately that she does not intend to cut the tax and has not discussed doing so. Instead, she said her focus is on stopping people from smoking and cracking down on illegal cigarettes.

What's prompting the concern

An RNZ investigation found illegal cigarettes being sold in Auckland shops well below what the law says they should cost. One East Auckland store was selling packets for as little as $13 — less than half of what the tax alone should add to the price. Importing cigarettes without paying tax and selling illegal cigarettes are both crimes in New Zealand, with fines up to $20,000, jail time, or both.

Public health experts are worried that reviewing the tax structure could lead to a cut. Janet Hoek, a professor at Otago University and spokesperson on smoking for Health Coalition Aotearoa, said the tax is important for getting existing smokers to quit and stopping young people from starting. She suggested a better solution would be for New Zealand to join an international agreement that tracks tobacco through the whole supply chain, rather than changing the tax itself.

The government's enforcement team has made progress. In their first major operation, they arrested five people and seized 1.3 million cigarettes worth more than $2 million in unpaid tax.

The broader context

Costello has a track record of backing tax breaks on tobacco products. Last year, she brought a proposal to Cabinet to reduce the tax on heated tobacco products — a different type of smoking product. Public health figures are now watching her words carefully, parsing what a "review of excise structure" might mean.

Cabinet has not publicly agreed to any change in the cigarette tax. What Costello has confirmed is that a review of the tax "for all of these products" went to Cabinet, though she did not specify which products that covers or when it would happen.

This gap between what was said on radio and what has been confirmed to journalists will likely keep drawing questions. The RNZ investigation and the seizure figures both show the illegal market is already selling cigarettes far cheaper than the legal price, so understanding what the government intends matters for public health policy.