The Swedish government intends to reduce the tax on snus by 20 percent and increase the tax on combustible tobacco products by 9 percent.
In a note on its website, the government said the move would lower the price of a snus can by approximately SEK3 and reduce the price of a cigarette pack by about SEK4.
Parliament had previously decided to increase tobacco taxes in 2023 and 2024. However, recent inflation has been higher than the forecasts upon which the increases were based.
Sweden already taxes smokeless tobacco at lower rates than smoked tobacco because it believes combustible products present a greater health risk.
The changes are expected to take effect on Nov. 1, 2024.
Tobacco harm reduction advocates applauded the decision. “Sweden’s new taxation policy is an exemplary move in fast-tracking the country even further towards its smoke-free target,” said Michael Landl, director of the World Vapers’ Alliance, in a statement.
“By making less harmful alternatives like snus more accessible through tax reductions, Sweden is not just theorizing harm reduction; it’s effectively implementing it. It’s time for the EU to take a leaf out of Sweden’s book.”