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The budget that the Norwegian government has agreed with the Progress Party contains tax cuts on typical products of border trade, such as sweets, soft drinks and tobacco. The idea is that Norwegians will refrain from shopping in Sweden even when the border is finally reopened.
– Closed borders have shown that it is possible to create more jobs in Norway, as reduced border trade creates greater demand in Norway, says Siv Jensen, leader of the Progress Party on the party’s website.
The closed border has led to an increase in new jobs for commerce in Norway. Grocery stores and Vinmonopolet near the border have gotten a boost.
But traders on the Swedish side of the border take the decision very calmly.
– I don’t think it affects cross-border trade too much. The price differences are so great and the cost level in Norway is so high. There are more mechanisms behind cross-border trade than buying cheap snus, says Ståle Løvheim, director of Nordby Shoppingcenter in Strömstad.
The fees for sugar and chocolate will be completely eliminated in the draft budget. The tax on soft drinks is cut in half, while the tax on tobacco is cut by 25 percent. The decision may affect candy stores more.
– It’s not positive for us. But we still think we’ll have a good deal. This is definitely not a crisis stamp, says Mats Idbratt.
Taxes on chocolate and sugar products are eliminated
Taxes on non-alcoholic beverages are reduced by 50%
Snus fees are reduced by 25%
Taxes on beer and wine are reduced by 10%
Facts: NTB
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