towards an increase in the price of a pack of cigarettes?

published on Friday, September 23, 2022 at 6:39 p.m.

As part of the Social Security budget examined Monday by the Council of Ministers, the government plans to index excise duties on tobacco to inflation, which “would lead to an increase of around 70 cents in the price of packets of cigarettes”, report The echoes.

Will inflation cause an increase in tobacco taxes, and by extension an increase in the price of a pack of cigarettes? After two years of stabilitythe government plans to index tobacco excise duties to inflation, which “would lead to an increase of around 70 cents in the price of cigarette packs”within the framework of the Social Security budget which will be examined Monday, September 26 in the Council of Ministers, according to The echoes. Or more than 11 euros for a packet of Marlboro, one of the best-selling brands in France, currently at 10.50 euros.

Asked about RTL, government spokesman Olivier Véran referred to the presentation of this Social Security Financing Bill (PLFSS). “That’s where the announcements will come in,” he said.

Worried tobacconists

A prospect that worries tobacconists.

“We had obtained from the government a tax freeze in 2021 and 2022, after the very big trajectory 2018-2020, and of course, this question (…) is the subject of negotiations between us, Customs and Bercy” , Philippe Coy, president of the Confederation of tobacconists, told AFP.

“For the moment, nothing is refereed but it will not be long,” he said. “I am worried: the tax tool has been used for 20 years, and this has caused the parallel market to rise, and has resulted in an economic disaster for our network with 10,000 establishments closed in 15 years”.

For the president of the Confederation of tobacconists, which will hold its annual congress on October 20 and 21 in Paris, any increase should be “very moderate, around 20 cents a year”. Mr. Coy calls for “multi-annual visibility of taxation, as under the previous five-year term”, allowing professionals “to pilot the liner and find the right directions”.

To reduce tobacco consumption, the government raised taxes regularly, from 2018, until reaching a price of 10 euros per pack of 20 cigarettes in November 2020. At the same time and to compensate for the shortfall linked to the drop in tobacco sales, the State has supported the transfer of tobacconists, new services, increased sale of vaping products, with a plan of 100 million euros from 2018 to 2021 .

In France, some 24,500 tobacconists live from the monopoly of the sale of tobacco which generates 60 to 80% of their income, according to the Confederation of tobacconists.

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