Tax increases expected on alcohol in Sweden in line with the new budget
Saturday, 14 September 2013
Sweden to increase taxes on alcohol - that is, taxes on wine and beer
to go up by seven percent and the tax on spirits and very strong
alcohol is to increased by a percentage point according to components
of the governments upcoming autumn budge.
Media reports hold that following the increase, an ordinary bottle
of wine bought from the government's alcohol monopoly, Systembolaget
will increased by Skr2, the price of a whole bottle of spirits is
to increase by the same amount and a can of beer increased by Skr0.30 -
The ain is that the tax on alcohol is expected to pull in around Skr730 million more to the state treasury if all remain equal.
All remain the same is called because in Denmark Alcohol is cheaper
and it is just a bridge away. the challenge is will it not lead to
increased purchases from Denmark or will in not increase smuggling and
increased purchases from the EU?
According to Swedish television, customs, police and experts -
believe this is the wrong way to go and are disappointed that the
government is not listening but stocking its head in the sand.
"I will be surprised to hear Public Health minister, Maria Larsson
sit on TV and say this is done to protect children and young people -
they do not buy from Systembolaget. It is smuggling that affects
our children and youth," says Erika Nylander of the Spirit and Wine
organisation in Sweden to Swedish news agency TT.
She does not believe that the tax increase will bring in Skr730 million more to the treasury as the government is proposing.
"It's a miscalculation. The government has not investigated the effects of illegal and legal import of alcohol."
However, before throwing the baby out with the bath water, the
Swedish Institute of Public Health has previously recommended a tax
increase on alcohol as an effective way to reduce the harm associated
"We are delighted with this decision. It was expected, since the
government announced it already some years ago," says Pi Högberg, Head
of the Institute of Public Health, to Swedish News agency TT.
The Public Health Institute believes it would be good with small
periodic increases, rather than a drastic one. Experience from Finland
shows that it is more effective than one large increase.
"We think it would be good to make a plan for periodic increases. If
you make a drastic increase that would probably have greater effect on
smuggling," She said.