One million snus-users in Sweden will face new tax increases on snus

The Swedish Government budget proposal, to be presented on September 20, 2007, is expected to include a new tax increase on tobacco products including snus, which is proposed to be SEK 2,70 for 24 g (pouch) and SEK 5,63 for 50 g (loose). The numbers include VAT and the increase is expected to be effective as of January 1, 2008.

In the light of the recent tax increase in January 2007, where the tax increased by SEK 3,69 for 24 g and SEK 7,69 for 50 g snus, including VAT, the new tax proposal was unexpected.

Swedish Match is currently analyzing the situation and will take all necessary actions in order to protect and improve profitability in the Swedish market.