Switzerland to Increase Cigarette Tax in 2013

 During a recent sitting, the Swiss Federal Council united on plans to increase the tax imposed on cigarettes and on other tobacco products in the Confederation from April 1, 2013.

As a result, the price of a packet of cigarettes is to rise by CHF0.10 and a 50 gram packet of fine cut tobacco will cost CHF0.60 more from April next year.

The planned tobacco tax rise has been deemed necessary for both fiscal and health reasons. The measure is expected to yield additional fiscal revenues for the state of an estimated CHF50m (USD52.9m) annually. The additional revenues will be used to consolidate the budget.

In making its decision, the Federal Council not only considered possible additional revenues, but also evaluated the evolution of cigarette prices both in neighbouring countries and in the European Union as a whole. The Federal Council took into account the percentage of smokers in Switzerland and considered other factors such as black market sales of tobacco products, smuggling, and cigarette sales in border areas.
The Swiss Federal Council had already indicated that the tax on tobacco products would rise back in October, as part of a series of savings measures.

Tobacco tax was last increased in Switzerland at the beginning of 2011. Over the last few years the Federal Council has adopted a “balanced” approach to its tobacco tax policy, involving “small steps”, says Tax-News.
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