KEY POINTS:
Dramatic changes to smoking laws in 2004 have had no effect on reducing the number of people who smoke.
Ministry of Health figures show the number of people smoking is higher than three years ago - 23.5 per cent of the population compared with 23 per cent - despite the ban on smoking in pubs and clubs, introduced in 2004.
There is some good news - the number of people taking up smoking and second-hand smoking rates have fallen considerably in recent years.
But anti-tobacco campaigners say it is now time for the Government to show "political bravery" by raising tobacco taxes.
ASH director Ben Youdan said a lot of good had come from the smoking law reforms of 2004.
The ASH annual survey of New Zealand year 10 students had shown a considerable drop in uptake rates, and the improvement in air quality at indoor entertainment venues and workplaces was enormous.
But the Government was not being brave enough in tackling prevalence rates, he said.
"It's simple. They need to increase taxes. There has been no significant tax increase in eight years - it's only increased with the consumer price index."
International evidence showed tax increases on tobacco products were the most effective way to decrease smoking rates.
"We would like to see a bit more political bravery on this."
The biggest tobacco companies had annual turnover bigger than New Zealand's GDP, he said.
"But we've had great success over them.
"I think there has been a great history of David beating Goliath when it comes to tobacco control."
The director of Auckland University's Auckland tobacco control research unit, Dr Marwena Glover, agreed bigger tax rises were needed.
New Zealand was pioneering many strategies aimed at reducing smoking, but they were being undone by low taxation, she said.
"Increasing taxes is seen as political suicide, and that's unfortunate. Because it's one of the most effective strategies we have.
"It undermines all the other fantastic stuff we're doing. We've been a leader in this field many times, but lately we've been dropping back."
Smoking kills 5000 New Zealanders each year, according to Ministry of Health figures.
The Ministry's chief adviser on public health, Dr Ashley Bloomfield, said a World Health Organisation report had identified raising taxes as one of its six strategies to fight tobacco.
However, the most recent tax increase on tobacco in New Zealand was in 2000, although the price was adjusted each year to reflect consumer price index increases, he said.
Associate Minister of Health Damien O'Connor said the Government had no plans to change the current system.
Tony Ryall, National's health spokesman said his party held the same position.