Starting January 1st, and for a period of 6 months, France is at the helm of the European Union. “An opportunity to reopen the European texts that govern tobacco taxation,” announced the Minister of Public Accounts, Olivier Dussopt.
In Andorra, Italy, or Luxembourg: tobacco prices are more attractive at the borders of France. In France, in recent years, prices have skyrocketed to combat smoking. On November 1st, tobacco prices are expected to rise once again, by approximately 50 cents.
These price hikes are pushing smokers to increasingly turn to neighboring countries where prices are sometimes half as much.
As a comparison, a pack of cigarettes in France costs around ten euros, while in Andorra prices are around 4 €.
Newsagents on the Front Line
This situation creates a loss of earnings for French tobacco shops, whose customer base is declining.
To support the economy and newsagents and to combat smuggling, which accounts for between 14 and 17% of the market in France.
Olivier Dussopt, the Minister of Public Accounts, announced that France will use its presidency at the head of the European Union to reform tobacco taxation. The minister wishes to extend the rule of one carton per person.
However, the taxation measures are expected to allow the State to generate nearly 16 million euros this year.
