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Swiss Smokers Face Tobacco Tax Hike

by Ulrika Lomas, Tax-News.com, Brussels

26 September 2002

The Swiss House of Representatives on Tuesday agreed by an overwhelming 124 votes to 13 to amend the existing law on cigarette taxation, which currently only allows the price to be increased by 10 centimes per packet.

According to the Swissinfo news service, which reported on the debate, President Kaspar Villiger predicted that the tax on tobacco could be increased by as much as 30 centimes per packet in the next federal budget.

Following the law change, the government hopes to slowly increase the Swiss levy on tobacco and cigarettes- which currently stands at 51.3%- to the European average of 57%.

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