DENMARK. The Danes are buying less alcohol and cigarettes from neighbouring countries following tax cuts on these products in Denmark.
Cross border purchases by the Danes are expected to fall to US$1.6 billion in 2004 and US$1.5 billion in 2005. This signals a drop of some US$900 million from previous years.
For the period of January to October 1, 2003, such purchases were worth US$1.7 billion.
The Danes, which are used to buying cigarettes from Germany, are likely to reduce their consumption once taxes on cigarettes increase from December 1, 2004.
Meanwhile, foreigners’ purchases of alcohol and cigarettes in Denmark have increased since October 1, 2003.