New Zealand Legislation: Acts

79 Indexation of rates of excise duty and excise-equivalent duty on alcoholic beverages and tobacco products

• (1) The Governor-General may from time to time, by Order in Council, amend the Excise and Excise-equivalent Duties Table to impose such rates of excise duty and excise-equivalent duty as the Governor-General thinks fit on all or any of the alcoholic beverages and tobacco products as defined in subsection (4).

  (1A) Subsection (1) is subject to subsections (2) to (4).

  (2) Any change in the rates of excise duty and excise-equivalent duty made by Order in Council under subsection (1),—

  • (a) shall be limited in accordance with this section having regard to movements in the Consumers Price Index All Groups excluding credit services; and

  • (b) in the case of a change in the rates of excise duty and excise-equivalent duty for alcoholic beverages, may come into force only on 1 July in any calendar year; and

  • (c) in the case of a change in the rates of excise duty and excise-equivalent duty for tobacco products, may come into force only on 1 January in any calendar year.

  (3) No new rate of excise duty or excise-equivalent duty imposed on any goods under subsection (1) shall exceed a rate calculated in accordance with the following formula:

  	a	× c
  	b

  where—

  a

  is the Index number of the Consumers Price Index All Groups excluding credit services issued by the Government Statistician for—

  • (i) the quarter ending on 31 March in the calendar year in which the order is to come into force, in the case of an order relating to alcoholic beverages; or

  • (ii) the quarter ending on 30 September immediately before the calendar year in which the order is to come into force, in the case of an order relating to tobacco products; and

  b

  is the Index number of the quarterly Consumers Price Index All Groups excluding credit services issued by the Government Statistician for the quarter ending 12 months before, and expressed on the same base quarter as, the relevant quarter specified in item a of this formula; and

  c

  is the existing rate of duty in respect of the goods to which the order relates.

  (4) In this section,—

  alcoholic beverages means goods that are—

  • (a) goods specified in headings 22.03, 22.04, 22.05, 22.06, 22.08, 99.10, 99.20, 99.25, 99.30, 99.45, and 99.50 of the Excise and Excise-equivalent Duties Table, not being goods that are exempt from excise duty and excise-equivalent duty; or

  • (b) undenatured ethyl alcohol and other goods specified in headings 21.05, 21.06, 22.07, 33.02, 99.05, 99.06, 99.35, 99.42, and 99.43 of that table (also not being goods exempt from excise duty and excise-equivalent duty)

  tobacco products means goods specified in headings 24.02, 24.03, 99.60, and 99.65 of the Excise and Excise-equivalent Duties Table.

  Compare: 1966 No 19 s 118CB; 1993 No 83 s 3(1)

  Section 79(1): substituted, on 1 January 2010, by section 11(3) of the Customs and Excise Amendment Act 2009 (2009 No 61).

  Section 79(1A): inserted, on 1 January 2010, by section 11(3) of the Customs and Excise Amendment Act 2009 (2009 No 61).

  Section 79(2)(b): amended, on 6 March 2007, by section 10(1) of the Customs and Excise Amendment Act 2007 (2007 No 9).

  Section 79(2)(c): amended, on 6 March 2007, by section 10(2) of the Customs and Excise Amendment Act 2007 (2007 No 9).

  Section 79(3): amended, on 6 March 2007, by section 10(3) of the Customs and Excise Amendment Act 2007 (2007 No 9).

  Section 79(4): substituted, on 1 January 2010, by section 11(3) of the Customs and Excise Amendment Act 2009 (2009 No 61).