The cost of smoking and drinking in Denmark to sky rocket
Thursday, 03 November 2011
Gone are the days Swedish people will flock in the boats and buses to go to Denmark and buy cheap booze and cigarettes. The new Danish government is revising the prices of booze and cigarette up.
Of course those to be heavily hit are the Danes with a very strong taste for cigarettes, beer, wine, candy, soft drinks and chocolate – these products are getting more and those who indulge in them are choosing a very expensive lifestyle.
The new Danish government will review the draft budget which the Finance Minister, Bjarne Corydon will present on Thursday as it will show most of these changes.
The Government wants to bring in Dkr625 million Danish in increased taxes on beer and wine and a further Dkr635 million on unhealthy food next year, according to news reports.
A packet of cigarettes will increase from Dkr39 to Dkr42. From 2013 also goods such as jam and ketchup will also see their prices leap.
One reason why the government is chasing revenues in this fashion is that Denmark's finances next year is estimated to have a deficit of Dkr95 billion. This is considerably higher than the government previously predicted.
The driver to this is the Danish weak domestic and sluggishness in the business, sector which means that the deficit has to grow. And so, the stimulation of consumption is an essential part of Corydon's budget.
But the question remains as to how increased taxes can lead to increased consumption.
By Scancomark.se Team