Those of us who have been following the news have seen that the current government wants to reduce the tax on snus. But when will this take effect, and by how much? Read more below!
The government plans to reassess the tax rates on tobacco and nicotine. This means a tax reduction on snus and a tax increase on, among other things, cigarettes and smoking tobacco. The result will be that a can of snus will become approximately 3 kronor cheaper, while a pack of cigarettes will cost approximately 4 kronor more.
In an earlier vote, the Riksdag decided that the tobacco tax would be increased during 2023 and 2024. Because inflation has been higher than the expected forecasts, the tax increase for 2024 will be smaller than planned. Normally, the tax is adjusted upward in line with inflation, but if the tax is changed at the turn of the year, no such adjustment is made. Because of this, the government believes that the tax on most tobacco products, such as cigarettes and smoking tobacco, should increase by approximately 9 percent, which would raise the price of cigarettes by around 4 kronor. Higher taxes and prices on these products may help reduce smoking.
When it comes to tobacco snus, however, there are reasons to reduce the tax. Snus is currently taxed significantly lower than cigarettes and smoking tobacco, as the latter are considered greater health risks. This difference in tax burden should be reflected even more clearly, and therefore there are arguments for reducing the tax on snus by approximately 20 percent, which would make a can of snus approximately 3 kronor cheaper.
When Will Snus Become Cheaper?
The changes will not affect the tax on nicotine-free snus or e-liquids, as these are already considered to be taxed at an appropriate level today. However, the government believes that it is justified to adjust these taxes upward annually in line with inflation, which is already the case for tobacco products. This is to maintain a consistent balance between the taxes on tobacco and nicotine over time.
The proposed tax changes are intended to take effect on November 1, 2024, and the government plans to present a detailed proposal to the Riksdag shortly.
You can read more on the government’s website via this link
