NEWS DESK — New Zealand’s convenience-store association is calling for powers to temporarily close shops that sell illicit tobacco, as part of a package it says is needed to address the illegal market.
In a statement, the New Zealand Association of Convenience Stores, or NZACS, called for tobacco retail licensing, stronger penalties and powers for landlords to end leases. The association represents more than 800 convenience operators, including fuel retailers, and its members sell legal tobacco.
NZACS director Dave Hooker pointed to Australia as a warning of how quickly illicit markets can grow. The association welcomed the Illicit Tobacco Action Group and planned penalty increases, while urging New Zealand to act early.
Survey and market estimates
The association cited a survey of 500 Auckland smokers in which 82% said they believed illicit tobacco was common and 73% said it was easy to buy. It said 85% agreed that New Zealand should learn from Australia and act early.
Those results describe the respondents’ perceptions and views; they do not measure the size of the illicit market. Without evidence about how participants were selected, they also cannot be assumed to represent all smokers in New Zealand.
NZACS also cited an FTI Consulting estimate that illicit products accounted for about one-third of tobacco consumed in New Zealand. A June 11 release by British American Tobacco New Zealand put the estimate at 33.5% in 2025 and estimated NZ$817 million in lost excise duty and goods and services tax that year.
The report was commissioned by Imperial Brands New Zealand, British American Tobacco New Zealand and Philip Morris New Zealand. The figures are industry-commissioned estimates, not independently verified measures of the market or lost revenue. A historical Ministry of Health evaluation raised methodological concerns about industry-funded illicit-market estimates generally; that criticism alone does not establish that this particular estimate is wrong.
Customs investigation
NZACS said Customs intercepted more than 23 tonnes of illicit tobacco in the 2025/26 year, an increase of 155%, citing Customs’ 2026 annual report. It also pointed to Operation Clarify as an example of enforcement against illicit tobacco.
In a separate July 1 statement, the New Zealand Customs Service said the six-month investigation resulted in five arrests, the seizure of an estimated 1.378 million cigarettes and approximately NZ$170,000 in cash. Searches were connected with Rotorua, Waikato and Auckland. Arrests and charges do not establish guilt.
The association said Customs Minister Casey Costello had linked illegal cigarettes to organized crime. It also noted that Labour’s Dr Ayesha Verrall had cited Australia’s illicit market when explaining why Labour would not reinstate very low nicotine cigarettes.
Government proposals
A released Ministry of Health Cabinet paper proposes targeted legislative changes to penalties and further work considering retailer licensing, with recommendations proposed by July 2027. These are proposals and planned work, not evidence that the measures have become law.
The paper’s regulatory analysis was assessed as only partially meeting quality requirements, including because costs, benefits and implementation issues were not adequately considered.
ATTRIBUTION: New Zealand Association of Convenience Stores via Scoop, November 5, 2026; British American Tobacco New Zealand via Scoop, June 11, 2026; New Zealand Customs Service, July 1, 2026; New Zealand Ministry of Health.
PHOTO: AI-generated; for illustrative purposes only.
Source Acknowledgement
Source: Scoop
- Published
- 05 Nov 2026
