Customs officers are stubbing out old duty-free limits for tobacco products from today.
Travellers will now have to pay GST and duty if they bring in more than 50 cigarettes, down from 200 cigarettes, or 50 grams of cigars or rolling tobacco.
The gift concession for tobacco has also been removed.
"The change has been well-signalled and people will have the opportunity to declare and discard excess tobacco on arrival," said Nicky Wagner, minister of customs.
"People who don't must pay the additional GST and duty, or face being fined and having their tobacco seized, and potentially even face prosecution."
The government said the drop in the duty free limit was "another step towards reducing the harm caused by smoking."
The minister said New Zealand's duty free tobacco allowance was now aligned with Australia.
Ms Wagner said tobacco interceptions were expected to increase in the short term.
She said the new duty free tobacco limit was expected to raise $50 million in additional revenue every year for the government.
