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Massive price jump on alcoholic sodas planned

Per Kristian Foss, the Norwegian Minister of Finance, wants to heavily increase the duty on alcoholic sodas in order to decrease consumption. The new duty will be in place after new year.

Prime minister Kjell Magne Bondevik’s government is planning a massive duty increase on alcoholic sodas, and from January the sodas will be at least NOK5 more expensive.

According to the newspaper VG, the duty on the sodas will be doubled on the national budget, which will be presented in October.

“We suggest that the alcoholic sodas are regrouped, from beer to liquor, in the national budget. But what we receive from increasing the duties on the alcoholic soda will we use every krone to reduce the duties on other alcoholic beverages,” said Øystein Børmer (H) in the Department of Finance to the newspaper.

The increased duties on alcoholic soda will likely add NOK100 million to the Treasury because the sodas have become very popular with the younger crowd.

It is only the liquor based sodas that will be subject to the price increase, but on the other hand, they have somewhere between 70 and 80 percent of the market.

The duty on wine based alcoholic soda, like cider, will remain the same.

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