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The New Zealand government dramatically reversed a ban on tobacco sales to younger generations that was due to go into effect in July. The government repealed the a law passed under former Prime Minister Jacinda Ardern’s administration that would have banned people who were born after January 1, 2009 from buying cigarettes for their entire life.
Health department officials said the coalition government was committed to reducing smoking, but planned on using different strategies than the total ban that was in place for anyone under the age of 16 for the remainder of their lives. Minister of Health Shane Reti referred to the potential of harm reduction tools such as vaping to help achieve the desired tobacco reductions.
While the percentage of smokers in New Zealand adults smokers has declined in recent years, there has been some pushback against the government’s repealing of the smoking ban. Advocates for the ban have warned that the indigenous Maori population in particular could see health problems continue due to a higher percentage of smokers than the national average. They also pointed to the high healthcare costs of taking care of smokers at older ages.
The New Zealand reversal is significant because the legislation would have eventually led to the world’s first mandated smokefree society. The development could be incrementally positive for British American Tobacco (NYSE:BTI), Philip Morris International (NYSE:PM), Altria Group (MO), and Japan Tobacco (OTCPK:JAPAY).
