Snus tax – what is it and how does it work?
Snus is a traditional tobacco product that has a strong position in Sweden and, to some extent, also in Norway. Unlike cigarettes, snus is a smokeless tobacco product that is used by placing portion pouches or loose snus under the lip. Although snus is considered less harmful than smoking, it still contains nicotine and other substances that can adversely affect health. To regulate consumption and contribute to government revenue, there is a special tax on snus and other tobacco products – the so-called snus tax.
What is the snus tax?
The snus tax is a form of excise tax levied on snus and chewing tobacco. It was introduced partly to compensate for the social costs associated with tobacco use and partly to serve as a public health control measure. The basic principle of excise duties on tobacco products is that the price of the goods is increased, which can help to curb consumption. At the same time, tax revenues are generated that can be used to finance healthcare and other social costs.
How is the snus tax calculated?
Unlike cigarettes, which are often taxed both per unit and based on sales value, the snus tax is mainly calculated based on the weight of the product. The tax is stated in kronor per kilogram of tobacco. This means that the larger the amount of snus a package contains, the higher the total tax will be.
The tax rate is set annually by the government and can be adjusted in connection with the budget bill. Historically, the tax on snus has been raised at regular intervals to keep pace with inflation and at the same time reinforce the public health policy effect.
Tax on white snus
In recent years, so-called white snus, or nicotine pouches, have become very popular. Unlike traditional snus, these products do not contain tobacco but consist of plant fibers enriched with nicotine. Because they do not contain tobacco, they were not subject to the same excise tax as regular snus for a long time. To avoid market distortion and ensure that these nicotine products are also taxed, the government has introduced a special tax on white snus. This tax is calculated based on the weight of the product, just like regular snus tax. In this way, white snus has been treated more equally compared to traditional tobacco products, although the debate about the right level of taxation is still ongoing.
How much tax is there on snus?
Snus tax has undergone several changes over the years and reflects a long-standing balance between public health and government revenue. During the 2000s, the tax was raised repeatedly, especially between 2007 and 2015, when several sharp increases were implemented. Despite this, snus consumption continued to increase, partly due to the establishment of cheaper low-price snus on the market. In 2011, automatic annual indexation linked to inflation was introduced, leading to a gradual but clear increase in the price of snus over the following decade. After 2021, however, real prices began to fall slightly, before a trend reversal came in November 2024 when the government decided on a 20 percent tax cut on snus, while at the same time raising the tax on cigarettes. This was justified by the fact that snus is considered to pose lower health risks than smoking and should therefore be taxed more proportionally. However, in January 2025, the tax on snus was raised again, albeit to a level that was still below that which applied before the previous reduction.
