Andrew Williams MP
Spokesperson for Revenue
18 January 2013
Tobacco Industry Set to Fleece NZ Taxpayers
New Zealand First is calling on the Government to explain why it allowed vast quantities of cigarettes to be imported
and stockpiled at the end of 2012 so they could be re-exported overseas and increased taxes claimed back by the tobacco
Revenue spokesperson Andrew Williams says the tobacco industry plan will see it make big tax gains following the 10 per
cent increase on tobacco tax which came into effect on January 1.
“'They were even chartering planes at huge expense to fly cigarettes into the country and stockpiled in warehouses to
meet the 31 December deadline. That's how lucrative this scheme is,” Mr Williams says.
“The Government has not picked up on the loophole which will see companies stand to make tens of millions of dollars for
doing nothing. They won't even have to sell the cigarettes in New Zealand.
“Soon they will be on ships back to Asia while New Zealand taxpayers will be paying out large tax rebates to these
“The Ministers of Revenue and Customs need to quickly step in and seize the merchandise pending investigations, and
close the tax rort that is being peddled under their noses,” says Mr Williams.