The Swedish government budget proposal, to be presented on 20 September 2007, is expected to include a new tax increase on tobacco products including snus.

The new tax proposal, which is expected to go into effect on 1 January 2008, suggests an increase of SEK 2.70 (USD 0.40) for 24 g (pouch) and SEK 5.63 for 50 g (loose). The proposal was unexpected considering that the tax had been increased by SEK 3.69 for 24 g and SEK 7.69 for 50 g snus as recently as this past January.
Swedish snuff maker, Swedish Match, whose shares fell 4 per cent following the news, said that it is currently analysing the situation and will take all necessary actions in order to protect and improve its profitability in the Swedish market.