British American Tobacco New Zealand - Illegal tobacco trade
Globally, illegal tobacco is a growing trade and is used by organised criminal groups to fund their activities.
The illegal tobacco market involves organised crime smuggling tobacco into the country, producing counterfeit cigarettes, and engaging in large-scale tax evasion. Read more about BAT’s view on illegal tobacco trade .
Illegal tobacco in New Zealand
Illegal tobacco is an increasing issue in New Zealand, having grown quickly in recent years. Last year, it was estimated that one-in-three cigarettes in New Zealand was illicit.
Smuggled tobacco undermines New Zealand’s smokefree policies. Unlike legal tobacco, illegal tobacco is not required to meet manufacturing standards or quality controls, is not subject to excise, and can be sold without health warnings or age verification.
In 2025, it was estimated that more than $800 million in excise taxes and GST was foregone by the Government due to the smuggling of illicit tobacco. Illegal tobacco also hurts small businesses, who struggle compete with those who are selling illegal tobacco.
You can read more in Illicit Tobacco in New Zealand 2025 report.
What to do if you have information about illicit tobacco
Selling and buying illegal tobacco is a crime.
If you suspect a retailer is selling illegal tobacco, you can anonymously report it to the Ministry of Health .
You can also make an anonymous complaint to Crimestoppers if you suspect someone is importing, distributing or selling illegal tobacco.