Switzerland to Raise Tobacco Tax in 2013


In the course of a current sitting, the Swiss Federal Council gathered to discuss the ideas to raise the tax imposed on cigarettes and on other tobacco products in the Confederation from April 1, 2013.

For that reason, the price of a packet of cigarettes is to increase by CHF0.10. A 50 gram packet of fine cut tobacco will be sold at CHF0.60 more starting from April next year.

The planned tobacco tax increase has been considered necessary for both fiscal and health motives. The action is supposed to yield extra fiscal profits for the state of a predicted CHF50m (USD52.9m) yearly. The extra profits will be used to consolidate the budget.

In making its conclusion, the Federal Council not only examined possible extra profits, but also considered the development of cigarette costs both in neighbouring countries and in Europe. The Federal Council took into consideration the rate of smokers in Switzerland and examined other aspects such as sales of tobacco products on black market, illegal sale of cigarettes, and tobacco sales in border locations.

The Swiss Federal Council had already pointed out that the tax imposed on tobacco products would increase back in October as component of a series of savings measures.

Cigarette tax was last raised in Switzerland in 2011. During the last few years the Federal Council has implemented a “balanced” strategy to its cigarette tax policy, involving “small steps”.


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