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

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

Within the framework of the Social Security budget examined this Monday by the Council of Ministers, the Government plans to index the special taxes on tobacco to inflation, which “would cause an increase of around 70 cents in the price of packs of cigarettes,” reports the echoes

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

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

Concerned tobacconists

A perspective that worries tobacconists.

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

“At the moment, there is nothing refereed, but it won’t be for a long time,” he said. “I am worried: the tax tool has been used for 20 years, and this has increased the parallel market, 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-year visibility of taxes, as in the previous five-year period”, allowing professionals to “steer the ocean liner and find the right directions”.

To reduce tobacco consumption, the Government raised taxes periodically, since 2018, until reaching a price of 10 euros per pack of 20 cigarettes in November 2020. In parallel and to compensate for the deficit linked to the drop in tobacco sales, The State has supported the transfer of tobacconists, new services, increased sales of vaping products, with a plan of 100 million euros from 2018 to 2021.

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

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