British American Tobacco New Zealand - Illegal tobacco trade

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. Today more than one-in-four cigarettes smoked in New Zealand is illegal.

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 2024, it was estimated that more than $600 million in excise taxes 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 2024 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.