A first increase in tobacco prices is scheduled for early November

The government published on Wednesday in the official gazette a decree increasing the minimum levy, raising the floor price of the cigarette package from 6.61 euros to 7.33 euros, before a price increase which should come into force at the beginning of November.

This increase in the minimum levy is an increase in taxes on cheaper cigarette and rolling tobacco packages, in order to encourage manufacturers to raise prices.

In this decree, taken by Bercy and the Ministry of Health, it is stated that the minimum charge “is increased to 231 euros for 1,000 cigarettes and 177 euros for 1 kg of rolling tobacco “.

“This very sharp increase of 72 cents in the tobacco floor price (the minimum levy rose from 6.61 euros to 7.33 euros) does not correspond to what was announced by the Minister of Health “, insisted one source of the sector under cover of anonymity.

Further increase in 2018

“Prices will therefore rise very sharply from November onwards, not by 35 cents but by almost 1 euro, before the further increase of 1 euro in 2018 “, added this source.

The price of the tobacco package must increase six times by the end of 2020 to reach 10 euros, according to the Minister of Health.

At the same time, the Ministry of Health and Customs sent a letter on Monday to the tobacco companies asking them for their price list for October 6, before the publication of a decree approving prices expected ” early November “, according to sources close by.

“This increase (minimum perception) will benefit the most expensive brands, already market leaders. While it is understandable that the government wants to raise prices from a public health perspective, aligning the entire market to a single price does not guarantee that smoking will be reduced in France,”said Brian Dalton, communications manager at Seita.

The confederation of the buralists denounces in a press release a ” new trick of pass-by “, with this double increase will reach between 1.30 euro and nearly 2 euros by March, according to her.

In France, tobacco manufacturers, not the government, set sales prices to consumers, but taxes account for more than 80%. Tobacco brings to the state about 14 billion euros a year.