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Excise taxes on tobacco in France will grow on July 1st. Prices on cigarette may grow up autumn

May 27, 2013

In France from July 1st will be increased excise taxes on cigarettes, tobacco and tobacco products, - confirmed Ministry of budget on May 10th. The agency doesn't know as of yet if increase of excise taxes will cause retail price increase on cigarettes. Experts consider that cigarette pack may increase in price autumn by 30-40 cents.

When taxes are increased tobacco Companies decide whether to compensate this increase by increasing prices or agree to reduction of profits. Companies should inform French authorities about their decision. Ministry of Budget hasn't received any information from tobacco Companies as of yet.

The last time excise taxes were increased in France in July 2012, from October prices on cigarettes were increased by 6.5 %. Experts consider that this time cigarette pack may be increased in price by 5 % or 30-40 centimes (now minimum price of cigarette pack in France is 6.1 euro).

It is possible that cigarettes in France will be increased in price again this autumn, - considers economic newspaper "Eco". Because of price increase in the first quarter of current year volumes of tobacco sales in the country have reduced by 9 % as compared to the same period of previous year.


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