The government is studying a tax increase on cigarettes

In the inflationary context, the executive must decide whether or not to remove the ceiling on the increase in tobacco taxation indexed to inflation by the presentation of the budgetary texts next Monday.

Should we expect an increase in the price of cigarettes in the coming months? It is the question which acts in any case Bercy, in full preparation of the bills of law of Finances and financing of the Social Security, presented in the Council of Ministers next Monday. In a context of high inflation – 5.2% in 2022, according to the latest government forecast – the price of cigarettes is at the center of the debates and the executive wants to change the legislation. Currently, an automatic rule is in place: that of the increase in excise duties relative to inflation from two years ago including a cap of 1.8%. In other words, the prices of cigarette packs would not increase much in 2023 nothing changed.

The government’s ambition is therefore simple: remove the cap on the inflation-indexed tax increase and take the price increase of the previous year – and no longer of two years ago – as a basis. In 2023, the increase in rights would therefore be between 5 and 7.5%, depending on the inflation rate observed in 2022. A project pushed by the Ministry of Health and which would be integrated into the Social Security budget of 2023. In the previous five-year term, Emmanuel Macron had raised the price of a packet of tobacco to a minimum of 10 euros – the last increase thus dates back to November 2020. According to The echoes, the price of the packs would increase by around 70 cents, pushing the overall price to 11 euros when the roll-your-own tobacco pack would rise to 15 euros. Contacted by Le Figaro, Bercy’s services do not confirm these figures, explaining that “nothing is arbitrated for the moment.Another option on the table, mentioned in our September 20 editions, is an increase limited to the cheapest packages.

SEE ALSO – Cigarettes: should the price be increased further?


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