Price of cigarettes | Cost comparison for e-cigarettes

The price of cigarettes in Switzerland has more than doubled in the last few decades. While a pack of cigarettes cost CHF 3.70 in 1995, smokers today have to pay between CHF 8.50 and CHF 9.20 for 20 cigarettes. In this guide, we explain how high the tax rate is and whether you can save a lot of money by switching to e-cigarettes.

How much do cigarettes cost in Switzerland?

As in most countries, tobacco cigarettes are also heavily taxed in Switzerland. If you add up all taxes and duties, 58.8% of the cigarette price goes into the hands of the state and funds. In other words, CHF 5.41 of the sales price of CHF 9.20 goes to the state. Behind the strong regulation of the cigarette market are efforts to make the harmful products as unattractive as possible through high taxes, but also to subsidize the AHV.

Cigarette price development in Switzerland

As the infographic above shows, cigarette prices in Switzerland have risen continuously in recent years.

How much does Iqos / Heets cost in Switzerland?

Iqos Heets or similar products also contain tobacco, but this is only heated and not burnt. At CHF 8.20 per pack (20 pieces), the price is almost the same as for cigarettes. However, the tobacco tax is not 50.7% but only 12% of the retail price. It is obvious that the tobacco multinationals are enriching themselves on a large scale, as the production costs for tobacco heets are likely to be similar to those for cigarettes.

Where does the revenue from tobacco tax go?

The revenue from tobacco tax is used to finance the AHV/IV. In 2020, tobacco tax generated CHF 2.1 billion, which corresponds to around 5 % of all AHV income.

Is the high taxation of tobacco products justified?

In Switzerland, over 9000 people die every year as a result of smoking. At first glance, the efforts to make products less attractive by charging high prices therefore make sense. However, the question arises as to whether a high price does not penalize the target group of smokers, who are already suffering from health problems, even more. On average, smokers die significantly earlier than non-smokers, which means that they take the pressure off the AHV. With the tobacco tax, it is precisely the group of people who make the least use of old-age and survivors' insurance that now finances the AHV with a hefty 5%. It is debatable whether the tobacco tax is justified or whether the state simply wants to enrich a minority of the population. It is certainly important and right to make smoking as unattractive as possible for minors. According to experts, a high price is an effective tool for this.

Price comparison: cigarettes versus e-cigarettes

Is it cheaper to smoke tobacco cigarettes or e-cigarettes? In principle, vaping e-cigarettes is (still) cheaper than smoking cigarettes. However, there are various aspects to consider.

*At first glance, it looks as if e-cigarettes are massively cheaper than tobacco cigarettes. But that's not quite true. Firstly, the information on the possible number of puffs for e-cigarettes is often embellished by the manufacturers. With a disposable vape of 2ml, it is usually not 600, but rather 200-300 puffs that are possible. In addition, most people puff on a vape much more often than on a cigarette. This results in a much higher number of puffs per day and therefore also higher costs. On average, the consumption of e-cigarettes is already as expensive as smoking cigarettes when all aspects are taken into account.

Cigarette Prices Switzerland | Shisha Heaven Conclusion

Cigarettes are expensive in Switzerland, costing around CHF 9 per pack. Almost 59% of the sales price flows into the hands of the state through taxes. By European standards, however, tobacco cigarettes are still rather cheap in Switzerland. With the new taxation of e-cigarettes, the price of this tar-free alternative has also risen sharply. Confusion continues to be caused by different information on the possible number of puffs of e-cigarettes and vapes. Based on the actual number of puffs possible and not the doctored manufacturer's specifications, some e-cigarettes are already almost as expensive as tobacco cigarettes, which, according to the current state of science, is disproportionate to the potential danger.