According to Briac Trebert
A sharp rise cigarette prices understanding? On January 1, 2022, several brands crossed the symbolic bar of 10 euros (this was the case of Lucky Strike or even Winffield, the list is here). A pack of red Marlboro (today for 10.50 euros) crossed the 10 euro mark in March 2020. Today brands (Dunhill, or even Vogue) are already 10.70 or 10.80 euros for a pack of 20 cigarettes. Will the “standard” soon be 11 euros?
According to Echoes, the government could decide on this topic from this Monday, September 26, 2022 in the Council of Ministers. The Department of Health would push in that direction to include this new revenue in the Social Security budget for 2023. As a result, the price of packages could increase by about 70 cents in the coming months.
Whether to remove the cap on inflation-indexed tobacco tax increases
The idea would be to release the tax increase not on N-2 (as it is today) but on N-1, the economic daily explains, which could lead to an increase of 5 to 7.5%.
Legislation on tobacco taxes, also called excise taxes, now sets a limit on the possible price increase. It cannot exceed 1.8% in terms of automatic increases indexed to inflation. And the annual inflation to take as a reference, in this case 2021, was 1.6%, which should be an automatic increase in 2023 with current regulations.
For a €10 package, this would represent an increase of around 10-15 cents. But the government could opt for a much bigger increase by changing the rules as part of the 2023 budget.
From 3.20 euros in 2000 to 10.50 euros today…
Contacted by user Le Figaro, Bercy services ensure that “nothing is decided yet”. There would also be another option on the table, which could consist of a significant increase in price, but limited to the cheapest packages.
In 2017, in order to reduce tobacco consumption, the government wanted to gradually increase the average price of a pack to 10 euros by the end of 2020. in September 2020 and the increase took effect on November 1.
In 20 years, the price of a pack of cigarettes (according to the best-selling Marlboro brand) has increased from 3.20 euros in 2000 to 10.50 euros today. 3.20 euros in 2000, 5 euros in 2004, 6.30 euros in 2012, 7 euros in 2016, 8.80 euros in 2019…
Since the new price increase from 1 January 2022, most packs of 20 cigarettes have a minimum price of 10 euros. The price of a pack of tobacco for a pack of tobacco (in 30 grams) is often around 15 euros.
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