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EUROPEAN UNION

KEY POINTS: Is the EU really planning to double the price of Swedish snus?

Claims over the weekend that the EU planned to bring in a new tax which will nearly double the price of Swedish 'snus' tobacco led to the hashtag #Swexit trending over the weekend. But a commission spokesman stressed on Monday that the story was inaccurate.

KEY POINTS: Is the EU really planning to double the price of Swedish snus?

Where does the claim come from? 

The Aftonbladet newspaper on Sunday ran a story based around a “secret, leaked” proposal from the European Commission for a new excise tax on tobacco which the newspaper claimed would be presented at the start of next month, with discussion then taking place between various EU member states. 

The article does not name a source or quote from or show any parts of the document, but it quotes Patrik Hildingsson, the head of communications at the snus producer Swedish Match, who it says has “received the coming report”. 

What was the reaction? 

The story generated a near viral response on Swedish Twitter. The Sweden Democrats party jumped on the story, with the Twitter account for the party’s EU MEPs tweeting using the hashtag #Swexit, which then started to trend. 

According to Charlie Weimers, one of the Sweden Democrats’ MEPs, the commission is proposing a 12.5 percent increase in tax on cigarettes, a 200 percent increase in taxes on snus, and 500 percent increase in taxes on tobacco-free snus.

In a way, this is unsurprising as snus is used by about 17 percent of people in Sweden. The tobacco product is made by grinding up tobacco with flavourings and other ingredients and placing it in small bags which are pushed under the upper lip. It has been linked to a higher incidence of mouth cancer, but is much less dangerous than smoking. 

Why is snus sensitive for Sweden? 

When Sweden joined the European Union in 1995, it was granted an exemption from the ban on oral tobacco products the European Union had brought in back in 1992. Companies are allowed to manufacture snus in Sweden and sell it to their citizens, but they are not allowed to sell snus in other EU counties.  

Is it true that the European Commission plans to force higher tax on snus? 

Dan Ferrie, a European spokesperson on tax issues, told the EU’s daily press briefing on Monday that the commission’s coming proposals on tobacco taxation would not affect Sweden’s freedom to tax the product. 

“Sweden has had an exemption since it entered the EU when it comes to the sale of snus,” he said. “The proposal that we are working on right now is not going to change that situation because the sale of snus is not permitted outside Sweden. Sweden ill as a result continue to have full freedom to set its own tax rate and tariffs for snus.” 

Already on Sunday, Sweden’s EU commissioner Ylva Johansson said that she had stressed to the commission developing the new proposals the “unreasonable consequences for Swedish snus” if it were to force a higher tax rate. 

“My judgement is that this proposal has not yet been developed to the level where it can be proposed,” she said in an sms to Swedish state TV broadcaster SVT. “Tax questions require unanimity within the Ministerial Council.”

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TRAVEL NEWS

Foreigners officially resident in Europe not covered by new EES passport rules, EU Commission confirms

The European Commission has clarified that foreigners officially resident in the EU are not covered by EES - the far-reaching changes to passport control rules due to come into effect next year.

Foreigners officially resident in Europe not covered by new EES passport rules, EU Commission confirms

The EU’s new entry and exit system (EES) is due to come into effect in May 2023, followed by the new ETIAS system in November, and between them they will have a major effect on travel in and out of the EU and Schengen zone.

EES means automated passport scans at EU external borders, which will increase security and tighten up controls of the 90-day rule – you can find a full explanation of how they work HERE.

But the system is aimed at tourists and those making short visits to the EU / Schengen area – not non-EU citizens who live in an EU country or second-home owners with visas, and there had been questions around how those groups would use the new system.

Now the European Commission has confirmed that EES does not apply for non-EU citizens who are living in those countries taking part, telling us: “Non-EU nationals holders of residence permits are not in the scope of the Entry/Exit System and ETIAS. More about exceptions can be found on the website.

“When crossing the borders, holders of EU residence permits should be able to present to the border authorities their valid travel documents and residence permits.”

What this means in practice is that foreign nationals living in France, Germany or other EU /Schengen states cannot use the new automated passport gates that will be introduced with EES in May 2023.

The reason for this is that the automated passport gates only give the option to show a passport – it is not possible to also show a residency permit or a visa.

The automated system also counts how long people have stayed in the Schengen area, and whether they have exceeded their 90 day limit – since residents are naturally exempt from the 90-day rule, they need to avoid the 90-day ‘clock’ beginning when they enter the EU.

You can listen to the team at The Local discuss the pklanned new EU passport checks in the latest episode of our Talking France podcast. You can play the link below or download it here.

READ ALSO How does the EU 90-day rule work?

A Commission spokesman said: “EES is an automated IT system for registering non-EU nationals travelling for a short stay, each time they cross the external borders of European countries using the system (exemptions apply, see FAQ section).

“This concerns travellers who require a short-stay visa and those who do not need a visa. Refusals of entry are also recorded in the system.

“Non-EU citizens residing in the EU are not in the scope of the EES and will not be subject to pre-enrollment of data in the EES via self-service systems. The use of automation remains under the responsibility of the Member States and its availability in border crossing points is not mandatory.”

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