Implementation
The preferred option will be given effect by:
- Legislation amending the Excise and Excise-equivalent Duties Table pursuant to the Customs and Excise Act 1996; and
- Legislation amending the CPI-based indexation provisions for transfer payments in the various Acts noted above.
Compliance costs will be minimised by maintaining the current structure and classifications for tobacco excise and ensuring effective communication with tobacco manufacturers and importers.
In considering legislative amendments the Government could also investigate the merits of allowing for excise rates to be adjusted by regulation in future (in addition to the present regulatory mechanism for CPI-based adjustments).
