A new Norwegian snus resistance proposition can benefit the border trade in Sweden according to Swedish Match. The fact that Norway already has the highest snus tax in the world is not enough to restrict the snus sale.
The Norwegian government has proposed to make all snus cans look the same. A dark green and dull design to take the “cool” out of snus cans.
Norway’s health care minister Bernt Høie recently presented the standardized and ad-free packaging for all tobacco in Norway.
The snus sale in Norway is already strictly regulated. It is only allowed to be sold from behind the counter and the snus is to be kept in anonymous refrigerators. But with this proposal the Norwegian government want to take it a step further. The proposal is expected to cripple the sale of flavored snus in Norway.
The Norwegian tax on snus is the highest in the world, 1000 NOK per kilo (2.2 pound) . As a comparison the Swedish snus tax is 432 SEK and the Danish is 66 DKK per kilo snus.
The high snus tax in Norway has lead to that only six out of ten cans consumed in Norway is sold in Norwegian shops. The rest is bought in tax free shops or across the border in Sweden.
Swedish Match predicts increased cross-border trade
If this proposition become reality the cross-border trade between Norway and Sweden will increase dramatically believe a representative at Swedish Match, Sweden’s largest snus producer.
A calculated expected increase in tax from the increased snus trade is 341 million SEK according to representatives at Swedish Match.
Last year the Swedish snus export increased with six percent.