Labour is calling for an investigation into a $216 million tax cut awarded to Philip Morris' heated tobacco products.
The decision has been met with criticism from Labour health spokesperson Ayesha Verrall, who claims it reeks of tobacco industry interference. She points out that Treasury advised the policy would likely only benefit Philip Morris and yet Cabinet signed it off.
A plan uncovered by Labour appears to show Philip Morris worked with New Zealand First and the Taxpayers' Union to influence the decision. Health Minister Casey Costello has been accused of hiding documents from the public and prioritising the tobacco industry's interests over those of New Zealanders.
Labour is calling for an investigation into the matter, citing a lack of transparency and the revolving door between New Zealand First and the tobacco industry. Ayesha Verrall said she is taking this action because Prime Minister Jacinda Ardern has refused to hold Casey Costello to a reasonable standard of behaviour when it comes to transparency.
The decision has sparked concerns about the government's relationship with the tobacco industry and the potential impact on public trust in government. Labour wants an investigation into whether tax breaks are being awarded due to backroom deals between politicians and lobbyists.