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Cigarettes on display in a shop - Source: ONE News -
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Health groups are predicting a big drop in cigarette smoking following the overnight increase in the price of cigarettes and tobacco.
However many smokers say they are prepared to pay more for their nicotine fix.
Builder Carrie Allen says he can't live without his rollies.
"I'm addicted to the stuff," he says. "I've been trying to give up for the past 9 years."
However lighting up will now burn more of a hole in his pocket.
A packet of 20 cigarettes is going to cost about $11 after overwhelming support in parliament for a stiff tobacco tax.
A bill enacted under urgency on Wednesday night has put in place a 10% increase in tobacco excise duty, which was effective at midnight. Two more 10% rises will follow in January 2011 and at the beginning of 2012.
When the two-year price hike cycle is complete, a packet of 20 cigarettes will cost about $14 and a 30 gram pouch of loose tobacco about $30.
Loose tobacco has been hit with a double whammy, an immediate increase of 14% to bring it into line with cigarettes as well as the 10% increases.
Associate Health Minister Tariana Turia brought the bill to parliament and told MPs the debate was going to be about life and death.
"The ghastly reality is that cigarettes kill one in every two long-term smokers," she said.
Labour, the Greens, the Maori Party, the Progressive Party and United Future backed the bill while Act split its vote. One of Act's MPs, John Boscawen, supported it and the other four opposed it.
After the last price rise in 2000, 80,000 people stubbed out.
