The Swedish Socialist government has introduced a new budget bill that is going to raise alcohol taxes in order to fund the Swedish defence.
Alcohol is already heavily taxed and regulated in Sweden with the state having a retail monopoly on the sale of alcohol.
Currently, over 50% of the retail price on alcohol is made up of taxes, with 32% going to alcohol tax and 20% going to VAT according to the state owned monopoly Systembolaget.
One litre of vodka with a 40% alcohol content will currently cost you almost SEK 206 (or $23) in taxes alone.
But now Sweden is looking to raise the taxes further, with the latest pricing changes taking effect from 2023.
We don’t know yet how much more alcohol will cost, but it is estimated that vodka for example will be several kronor (Swedish currency) more expensive.
The government says the increased tax will be used to pay for part of increased funding to the Swedish defence force.
In the coming years Sweden is looking to drastically increase it’s army capabilities, increasing funding with a whopping 40% – Something not seen since the 50s.
Between 2021 and 2025 Sweden will be increasing military spending with SEK 27 billion ($2.9 billion).
The increased alcohol tax will be behind SEK 1 billion ($111 million) of that funding in 2023.
The extra funding towards the Swedish defence forces will among other things go towards increasing the army, strengthening the air force and the marines.
Personell within the Swedish defence forces will be increased from 60 000 up to 85-90 000.