Abolished border trade resulted in record high tax revenues on soft drinks and beer

Nordby ShoppingcenterSweden.Nordby Shoppingcenter just outside Svinesund.Photo : Audun Braastad / NTB scanpix
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The Brewery and Beverage Association (Bryggeri- og drikkevareforeningen) estimates that the state’s tax revenues from soft drink and beer sales increased by more than 700 million kroner in the summer months.

In July, soft drink sales increased by 54.7 per cent and beer sales by 20.3 per cent compared with the same month last year. The abolition of cross-border trade in Sweden is considered the main reason.

“Never before has the state received greater tax revenues from beverages. On beer alone, the increase in sales leads to an increased income from alcohol tax of 318 million in June and July, compared with the same period last year. At the same time, the state’s income from soda tax has increased by 85 million,” says Director Erlend Vagnild Fuglum of the Brewery and Beverage Association.

“If you include VAT and other taxes, we estimate that the tax revenues from soft drinks and beer have increased by more than 700 million kroner in the summer months alone,” he continues.

Fuglum asks the politicians to take action to move the trade home, and points to Denmark. Figures from the Danish Ministry of Taxation show that the country has almost halved its cross-border trade with Germany since 2005, TV 2 wrote in February.

All border regions in Sweden are considered “red” except for Norbotten and Västerbotten, where border traders from Nordland mainly go.

© NTB Scanpix / #Norway Today

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