The proposed Sweden tobacco tax increase would raise duties on most smoking products from 2027, while keeping a softer approach on snus, Sweden’s traditional oral tobacco.
Government memo details Sweden tobacco tax increase
According to a new memorandum from Sweden’s Ministry of Finance, the government plans to raise the excise duty on cigarettes, cigars, cigarillos, smoking tobacco, chewing tobacco and other smoking products by 3.5 percent in real terms. The increase would come on top of the annual indexation for inflation, and is scheduled to take effect on 1 January 2027.
The proposal forms part of the government’s broader tax package and follows long-running efforts to reduce smoking-related harm. By making combustible tobacco products more expensive, the cabinet aims to discourage consumption and to secure additional public revenue in the medium term.
Snus and risk-based taxation in Swedish health policy
While taxes on most tobacco products would rise faster than inflation, the government intends to treat snus differently. The memorandum proposes that the snus tax be updated only to match the indexed 2027 rate, without the extra 3.5 percent surcharge applied to cigarettes and other smoking tobacco.
This approach is consistent with Sweden’s risk-based model of nicotine taxation, where more harmful combustible products carry higher excise duties than oral products such as snus. Swedish governments have long highlighted snus as a lower-risk alternative to smoking, even as public health authorities continue to warn about the health impacts of all nicotine products.
From 2027 smokers will pay more than snus users
If the reform is approved by the Riksdag, the tax changes would expand the price gap between cigarettes and snus from 2027 onwards. For consumers, this would mean that smokers face steeper price increases than snus users, reinforcing existing incentives to switch from smoking to non-combustible products or to quit entirely.
Retailers and producers of traditional tobacco products are likely to see higher final prices built into their products as the new tax levels are phased in. The government, in turn, expects higher excise revenues from smoking products, even if consumption continues to decline over time.
Debate on public health, revenue and EU tobacco rules
The proposal is expected to feed into a wider Swedish and European debate on tobacco control, harm reduction and tax policy. Sweden has one of the lowest smoking rates in Europe, but snus and nicotine pouches remain widely used, particularly among men and younger consumers.
Supporters of the reform argue that it is coherent with Sweden’s public health strategy, which combines relatively strict rules on smoking with lower taxes on non-combustible products. Critics, including some health advocates, warn that a comparatively favourable tax regime for snus and pouches may sustain high levels of nicotine use, especially among young people.
At EU level, discussions continue over the future of tobacco excise directives and whether higher, more harmonised taxes should be introduced on cigarettes, heated tobacco, snus and nicotine pouches. The Swedish government has repeatedly defended its national room for manoeuvre and its differentiated approach to nicotine products. The new proposal to raise taxes on cigarettes more than on snus is likely to be presented as further evidence of this risk-based model.
In the coming months, the memorandum will be subject to consultation and political debate before any final bill is put to a vote. For Nordic and European observers, the outcome will offer new indications of how Sweden balances public health goals, fiscal needs and cultural attachment to snus in its evolving tobacco policy.
