“Swedish snus users should not have to pay SEK 70 for a can of white snus” This is the view of the Swedish Taxpayers' Association, which is now entering the debate on the EU's proposal for a new tax on smokeless nicotine products. Through a petition, they want to give Swedish politicians support in negotiations with the other EU countries.
Since it became known that the European Commission wants to finance an increased budget with new taxes on smokeless nicotine products, there have been many reactions. Politicians and interest groups are protesting, not least in Sweden, where the use of snus and e-cigarettes is increasing as smoking declines.
“If the European Commission has its way, this will mean a tax increase of SEK 5,000 per year for Swedish snus users. In addition, the EU will be entitled to take the revenue. The government cannot allow this,” writes Erik Bengtzboe, chief economist at the Swedish Taxpayers' Association, in a debate article.
Sharp price increase for white snus
The Commission proposes an EU-wide tax on white snus (nicotine pouches), which would raise the price from the current level of around SEK 45 to almost SEK 70 per can - a doubling.
Today, around 8% of the adult population uses white snus on a daily basis, and this figure is increasing. This trend is likely to be linked to stricter rules for cigarettes and stricter rules for other nicotine products such as e-cigarettes.
The EU's stated aim with increased taxes is to prevent transitions between different nicotine products - something the Taxpayers' Association believes is contrary to the Swedish harm reduction model.
Risk of more people taking up smoking
“Snus is a strong contributing factor to the low percentage of smokers in Sweden and our lower levels of smoking-related diseases. Raising the tax on snus so that it approaches cigarette prices entails a great risk that more people will choose to smoke,” Bengtzboe writes in Skaraborgs Allehanda.
EU wants to have its own taxing rights
The reason for the increase in nicotine taxes is the EU's planned budget for 2028-2032 - a record-breaking budget that is currently unfunded. Part of the revenue from nicotine taxes is supposed to go directly to the EU, which has not been possible so far.
“The EU shouldn't have the right to tax, but this proposal aims to change that. It is a dangerous path to take. Swedish taxes should be decided by the Swedish people, not by bureaucrats in Brussels.
The EU has major problems with over-bureaucratisation and lack of competitiveness. Giving the EU its own right to tax risks exacerbating both these problems - it's like giving away your credit card to someone you know can't hold the money,” Bengtzboe writes.
Collecting names for the negotiations
The Taxpayers' Association has now started a petition to draw the attention of Swedish politicians to the importance of the issue ahead of the upcoming negotiations on TEDOR (Tobacco Excise Duty Own Resource).
“It is time that we made it clear that we do not accept this heavy-handedness from the EU. The more people who sign, the better negotiating position our Swedish representatives will have in Brussels. With figures showing that this is an issue that engages the entire Swedish population - regardless of party sympathies - Brussels can understand why it is impossible for Sweden to back down in this negotiation,” Bengtzboe writes.
Working on tax issues since 1921
The Taxpayers” Association has 30,000 members and is a non-partisan organisation founded in 1921. The association works according to the motto ”lower taxes and less waste of tax money" and, among other things, provides advice and support to fellow citizens on tax issues and examines tax issues via the Waste Ombudsman (SlösO) and the podcast Uppskattat.
Sources for this article:
Petition ”Stop the snus tax”
Follow the developments:
Follow the debate on the upcoming EU budget and new nicotine taxes on Vejpkollen.
