Holiday home owners, smokers and farmers will pay more tax as the government moves to close tax loopholes and tries to stop people smoking.
Tobacco tax excise will increase by 10 per cent on January 1 in each of the next four years.
The price of a packet of 20 cigarettes will be more than $20 by 2016, Associate Health Minister Tariana Turia says.
The clampdown on holiday homes was signalled as a possibility in last year's budget.
In future, deductions of holiday home expenses, which reduce tax, will be lower.
"Owners who rent out their holiday home for 30 days in a year and use it themselves for 30 days in a year will be able to claim a deduction for 50 per cent of their general costs, rather than the 90 per cent they can claim now," Revenue Minister Peter Dunne said.
The change brings in $109 million over four years.
Farmers will also no longer be able to get a tax break by using a particular valuation scheme for livestock.
Three tax credits - for those with income under $9880, for childcare and house keepers and for income of children - are being replaced by more limited exemptions, reaping $117m over four years.
Finance Minister Bill English says his fourth budget is "a sensible budget in uncertain times".
"It is certainly not a slash and burn budget," he said.
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