A retail industry report by FTI Consulting estimates illicit tobacco accounts for 33.5% of total consumption in New Zealand, up from 27.2% a year earlier, though anti-smoking advocates dispute the methodology and argue it does not align with tax revenue trends. Official data from Stats NZ shows no dedicated national study of illicit tobacco consumption, while Treasury figures indicate tobacco excise revenue fell to $1.47 billion ($852 million) in 2024–25, down about $2 million ($1.2 million) from the previous year.
Customs and government agencies have formed an interagency action group with police and health authorities to target illicit tobacco supply chains, while enforcement penalties include up to six months’ imprisonment or a $20,000 ($11,600) fine for illegal sales. Australia is cited in comparison, where the Bureau of Statistics estimated 80% of nicotine products consumed in 2025 were illicit, up from 12% in 2017.
