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Suppliers' price drop offsets alcohol tax hike

Published lördag 1 mars 2014 kl 10.03
Photo: Claudio Bresciani/Scanpix.

Drinkers in Sweden will likely see little change in the cost of alcohol after several beverage companies lowered their prices Saturday to offset a Jan. 1 tax increase on booze.

Swedish Radio News reports that many shoppers at the Systembolaget, Sweden's state-owned alcohol retailer, won't notice the higher tax due to the price cut. The government passed a tax hike on alcohol that raised the tax on wine and beer by 7 percent and the tax on spirits by 1 percent.

Suppliers said they are lowering their retail prices to keep sales healthy. CEO of Giertz wine imports Emil Sallnäs said his company dropped prices on some 30 of their wines at the Systembolaget.

"We restore our prices to the same level that we had prior to January 1," he told Swedish Radio News. "In some cases, we did it in conjunction with our producers and in other cases we pull down our margin since we are likely to sell more bottles that cost SEK 69 instead of 71."

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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