The bill is now set to become law - passing its final reading in Parliament with support from Labour, the Greens and Te Paati Māori.
Associate Health Minister Dr Ayesha Verrall said the legislation accelerated progress towards a smokefree future.
“The number of retailers around the country that can sell tobacco will be reduced to a tenth of the 6000 there are now. This legislation mandates a maximum of 600 tobacco retailers by the end of next year,” she said in a statement.
New Zealand’s smoking rate is already low with just 8 per cent of adults smoking daily, down from 9.4 per cent a year and a half ago and half the rate compared to 10 years ago.
Verrall said the measures were important for equitable health outcomes for Māori and would close the life expectancy gap for Māori women by 25 per cent and by 10 per cent for Māori men.
Anti-smoking groups react
Otago University Professor and ASPIRE2025 co-director Janet Hoek told The Science Media Centre that all three measures would help reduce smoking across all population groups.
“Reducing the number of outlets selling tobacco will improve community wellbeing, and enhance the safety of retailers,” she said.
Removing tobacco from small dairies would help remove an important risk to staff, she said.
Aotearoa’s approach was world-leading and likely to produce profound health benefits, she said.
Action for Smokefree 2025 chair Emeritus Professor Robert Beaglehole said the bill had several good aspects.
However, the bill may have the unintended effect of penalising existing smokers by cutting the number of cigarette retail outlets to 600, he said.
“The mandatory denicotinisation policy, third main policy, will not come into effect for at least two years and thus will not help achieve the 2025 goal. At best, it may encourage the tobacco industry to promote less harmful products such as vaping. But it might also encourage illicit cigarette trade,” he said.