It looks like a cigarette, it’s marketed like a cigarette, but Philip Morris NZ’s new ‘cigarillo’ is about $3 cheaper for a pack – to the dismay of health experts
The Government has expressed “extreme concern” at a new cigarette brand that undercuts three years of excise hikes, by exploiting a tax loophole.
The world’s biggest tobacco multinational has begun selling Philippines-made cigarettes in brown paper, seemingly representing tobacco leaf, that it imports into New Zealand as “cigarillos”. Through a historic anomaly, these incur a lower excise duty – at least $5.24 less for a pack of 20 – enabling the company to sell them for 10 percent less than the next cheapest cigarette brand and pocket the difference.
Like other tobacco companies, Philip Morris NZ has been aggressively diversifying into non-combustible vaping products. Its website claims: “We are working towards a future without cigarettes: a future where adult smokers have access to smoke-free alternatives that are a far better choice than continued smoking.”
But unlike the other companies, it’s introduced a new smoking product this year. The Chesterfield Leaf packaging and branding is indistinguishable from other 20-packs of cigarettes, and retailers offer it to consumers seeking cheap cigarettes.
Newsroom purchased a pack yesterday at a Countdown supermarket in Auckland. Asked for the cheapest pack of 20 cigarettes, the customer services supervisor offered the Chesterfield Leaf. “That’s the new one,” she said, showing the packet and pointing to the brand. “Chesterfield Leaf.”
Jonathan Milne – Newsroom – 2022-07-05
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