With the tax on tobacco about to go up again there's fresh pressure on the Government to legalise e-cigarettes.

Excise duty rises another 10 percent tomorrow, but the Taxpayers Union says the ongoing increases are having a diminishing effect on smokers.

Executive Director Jordan Williams said he's hoping the new administration will follow through on National's plan to allow e-cigarettes.

"They're dragging their feet on legalising the sale of e-cigarettes that contain nicotine , barring New Zealanders from legally buying the one much safer alternative to smoking."

Williams said official figures prove the increases are having less impact, and fewer people will stop smoking because of the hike.

"Counter-intuitively it's actually having the least impact on the poorest communities. Number one, members of those poor households that are smokers are going without and number two, it's actually driving a bit of an underground market."