Yesterday Dagens Nyheter reports that the Swedish government will raise taxes on tobacco next year. The government will also yearly spend 115 Millon SEK (12,4 Million euro) for three years to prevent heath problems.
Health Minister Maria Larsson argue that this is a moderate tax-raise. - It is after all a very small increase, but we know that young people are very price-sensitive. "...." We must be careful while a too big tax-raise would lead to more smuggling, says Maria Larsson.
In real prices the increases of tax differs. A normal tin of cigarettes will cost 47,50 SEK (5,1 euro) instead of 46SEK. Those who buy their tobacco separately will have to pay about 30SEK more for 40 g box. A normal tin of snus* will cost 32SEK (3,5 euro) instead of 27SEK.
The tax-raise on snus is higher than on cigarettes which upsets Swedish Match, the main tobacco manufactorer in Sweden. - It is upsetting that the government once more raise taxes more on snus than on cigarettes, says Ulf Svensson, director of information at Swedish Match.
*Snus is a moist powder tobacco product that is consumed by placing it under the upper lip for extended periods of time. Read more on Wikipedia.