On June 11, the Swedish Parliament
passed the Govermental bill to increase the tobacco tax by 29 %
as of August 1, 1997
As a result of this tax increase
the consumer prices of tobacco products will be increased as of
July 29, 1997. Due to administrative reasons, the increase in
price will take place a few days before the tax increase.
The consumer price for the market
leader cigarette brand "Blend" will be increased from
SEK 36.50 to SEK 44.50. The price for a pack of John Silver will
be increased from SEK 37 to SEK 45 and the price of the low-price
brand "Right" will be increased from SEK 35 to SEK 43.
After Sweden’s entry into the
EU, a new tobacco tax system has been introduced in Sweden. For
cigarettes, this system consists of a fixed part per cigarette
and a floating percentage (value added) which is calculated on
the basis of the set maximum consumer price. Each consumer pack
must be labeled with this maximum price, which is determined by
the manufacturer or the importer.
According to the EU-directive on
tobacco excise taxes, tobacco taxes shall amount to not less than
57 % of the consumer price. The new Swedish tax rate will mean a
tax increase on cigarettes from approximately 53 % to
approximately 56 % of the consumer price.
Sweden has been granted a grace to
achieve the 57 % tobacco tax level until the end of 1998.
The maximum consumer price system
applies to cigarettes only. For other tobacco products pricing is
optional. New prices are, therefore, approximations (SEK):
| |
Current
price |
New price |
| Generalsnus
(moist snuff) /can |
18.00 |
21.50 |
| Portion-packed
moist snuff /can |
17.00 |
21.00 |
| John Silver
Roll-Your-Own /pack |
49.00 |
59.00 |
| Hamiltons
Blandning, (pipe tobacco) /pack |
57.00 |
69.00 |
| Bellman,
(cigarillos) /pack |
29.00 |
31.50 |
| Accent No 1,
(filter cigarillos) /pack |
28.00 |
33.00 |
Breakdown of the consumer price
for a pack of Blend (SEK):
| |
Current
price |
New price |
| Manufacturer |
4.76 |
5.28 |
| Trade |
5.25 |
5.40 |
| Taxes,
incl. VAT |
26.49 |
33.82 |
| The
consumers’price |
36.50 |
44.50 |
Breakdown of the consumer price
for a pack of the moist snuff General Snus (SEK):
| Manufacturer |
4.98 |
5.53 |
| Trade |
4.62 |
5.52 |
| Taxes,
incl. VAT |
8.40 |
10.45 |
| The
consumers’price |
18.00 |
21.50 |
For further information,
please contact:
Bo Aulin, Senior Vice President.
Phone: +46 8 658 03 64
Mobile:+46 70 558 03 64
Home: +46 8 768 45 22