Smoking: Cigarette Prices will Remain Stable, Rolling Tobacco Increases

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Manufacturers not passing on latest tax increase of cigarettes to consumers

Manufacturers have ultimately not raised the price of pack of cigarettes despite rising taxes …

Good news for smokers. The price of cigarette packs will remain stable, with several marks staying at the same price, despite threats of manufacturers to pass a tax on the distribution, when the price of rolling tobacco is it on the rise, according to a decree published Thursday Official newspaper. This new  prices come into force on the 20th February.

As hinted on Tuesday by the Health Minister Marisol Touraine with increased taxes on cigarettes and tobacco, the manufacturers have decided not to raise the price of pack of cigarettes despite rising taxes. In January, two new taxes, one on rolling tobacco and the other on distribution, are coming into force after the budget vote of Social Security in the fall.

Marlboro remains at 7 euros

These are the manufacturers, not the state, that set the retail price, “freely” as the law says. They just have them approved by the government, which ensures that these prices are not lower than the cost price and all taxes. According to the decree of approval of prices published Thursday several brands are indeed supporting their initial price, or make slight increases. This is the example of Winston brand or the blue News that both remain at 6.50 euros. The different packages of Marlboro will remain at 7 euros. The Camel brand increases slightly from 6.90 to 7 euros.

“Despite an increase in taxes, the industry may well decide not to pass it on, stay at a lower price than competitors to attract more customers,” noted Tuesday a source close to the industry. However, “the increases will come later (…). I will not let go because increasing the price of tobacco is important in terms of public health, “insisted Tuesday by Marisol Touraine.

80% of the tobacco price consists of taxes

Rolling tobacco is subjected to an overall increase. For example, a packet of Fleur de Pays rises from 7.40 to 8.50 euros. In France, 80% of the tobacco price consists of taxes, 8.74% from the tobacconists, and the remaining manufacturers.

The last increase in tobacco prices in France dates back to mid-January 2014.

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