Excise Tariff Amendment (Tobacco) 2024

# Excise Tariff Amendment (Tobacco) 2024 ## What it does This law changes how much tax is added to tobacco products. It sets a fixed 5% tax increase for three years (September 2023, 2024, and 2025) instead of letting the normal inflation formula apply. It also gradually reduces the weight conversion factor used to calculate tobacco excise, meaning the tax per gram of tobacco will slowly decrease over time. ## Why it matters Tobacco prices will go up faster than inflation for the next few years, which could push smokers to quit or reduce consumption. After that period, the gradual reduction in how tax is calculated per gram means price increases will slow down — essentially shifting when and how much extra tax people pay on cigarettes and other tobacco products. ## Key details - **Three-year boost**: A fixed 5% tax bump applies on 1 September 2023, 2024, and 2025 — overriding the normal indexation rules - **Weight conversion changes**: Starting September 2023, the tax calculation per gram shifts from 0.000675 down to 0.0006 by September 2025, reducing the tax base over time - **Already in effect**: The law came into effect on 1 September 2023, so these changes have already been implemented

🔒 Voting closed — this bill has been decided by parliament