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Prices of cigarettes increase
An average pack of 20 cigarettes costs around DKK 41 today (as of March 1st, 2020). The price varies depending on both the cigarette brand and the length of the cigarettes, and therefore both the current price and future prices are average prices.
Because of new taxes, the price of cigarettes in Denmark will rise by 50 percent by 2022. On April 1st, 2020, the price increases to DKK 55 for an average pack of 20 cigarettes, which is equivalent to a price increase of approx. DKK 14. On January 1st, 2022, the price increases further to DKK 60 per cigarette package.
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Danish cigarettes among the most expensive in Europe
With the new tax increases, Danish cigarettes become among the EU's most expensive, surpassed only by Ireland (DKK 85) and the UK (DKK 64) – if the price does not rise in other countries. In our neighboring countries Sweden and Germany, a pack of cigarettes costs an average of DKK 42.
Among the cheapest EU countries are Latvia, Lithuania, Poland, and Slovakia, where an average pack of cigarettes costs DKK 24. At the very bottom is Bulgaria with a price of DKK 19. Among European countries outside the EU, Norway is the most expensive country with a price of 99 DKK.
However, this is nothing compared to Australia where an average pack of 20 cigarettes costs around DKK 130 – with another price increase set for September 2020. In the United States, the average price is around DKK 46, but the price varies greatly by state.
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The reason for the price increase
During the 2019 general election campaign in Denmark, the price of cigarettes was a major topic of debate. An increasing number of young people aged 16-24 start smoking – contrary to the government's aim of a smoke-free generation by 2030 – and the price of cigarettes is, according to several experts, effective in preventing children and young people from starting smoking.
During the negotiations on the Finance Act 2020 , the Social Democrats, the Danish Social Liberal Party, the Socialist People's Party, the Red–Green Alliance, and the Alternative agreed to increase the price to DKK 60 in 2022. In addition, the parties allocated DKK 5 million annually to the Danish Safety Technology Authority to ensure retailers comply with age limits for the sale of tobacco products.
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Other tobacco products and e-liquids are also increasing in price
The increased taxes also apply to other nicotine and tobacco products. The tax on cigars, cigarillos, cheroots, chewing tobacco, snuff, and other smokeless tobacco is increased by about DKK 14 per pack from April 1st, 2020, and further by about DKK 5 from January 1st, 2022. The purpose is to avoid price differences between cigarettes and products similar to cigarettes.
The tax on e-liquids for e-cigarettes will increase by DKK 2 per ml. from July 1st, 2022. A 10. ml e-liquid bottle will then cost a total of about DKK 50. The tax does not apply to smoking cessation products such as nicotine gum, nicotine lozenges and nicotine patches.
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FAQ about cigarette price increase
The price for an average pack of 20 cigarettes in Denmark increases from around DKK 41 today to around DKK 60 in 2022.
The first price increase to around DKK 55 per pack of cigarettes comes into effect on April 1st, 2020. The second price increase to around DKK 60 per pack comes into effect on January 1st, 2022.
The purpose of the price increase is to ensure that fewer children and young people start smoking. According to several experts, the price is effective in preventing children and young people from starting smoking.
The price of cigars, cigarillos, cheroots, chewing tobacco, snuff, and other smokeless tobacco is increased by about DKK 14 per pack from April 1st, 2020, and further by about DKK 5 from January 1st, 2022. The price of e-liquids is increased by DKK 2 per ml from July 1st, 2022, in which case a 10 ml e-liquid bottle will cost a total of about DKK 50.
The price increase is part of the Danish Finance Act and therefore not applicable to other countries. But it is possible that governments in other countries also will be increasing the price of cigarettes.