The price of tobacco will increase on March 1. Published in the Official Journal on Tuesday, a ministerial decree dated January 31 sets the new prices, up due to the application of the first tax hike of 50 cents, scheduled for this year - the second being scheduled for November 1 by the government .
The price of the package of Marlboro, the best-selling brand of cigarettes in France, will reach the symbolic ten euros mark on March 1. The increase in taxes has reduced sales and aims to reduce smoking in France.
SIMULATOR. How much has your pack of cigarettes increased?
As of next month, the Philip Morris group, whose market share is 40% in France, including 26% with its flagship brand Marlboro, will now sell the package of Marlboro Red at 10 euros, compared to 9.30 euros currently. Another of its best-selling references increased by 60 cents: the Winston's increased to 9.60 euros.
The market leader therefore passed on the increase of 50 cents, and at the same time increased its margin from 10 to 20 cents per package.
In France, tobacco manufacturers set their selling prices, but the State can encourage increases by varying the taxes, which represent more than 80% of the price. Each manufacturer then decides to maintain, trim or increase its margins, depending on the competition and its pricing policy.
Refunds for smoking cessation treatments
After the presidential election in May 2017, the government ended four years of price stability, sharply raising taxes to bring the price of the package to around 8 euros on March 1, 2018, and since then making two annual increases 50 cents, programmed one in March, the other in November, with the stated aim of reducing tobacco consumption.
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These price increases caused sales to drop 9.32% in 2018 and 7.2% last year. According to the tobacco companies, this increase in taxation is causing the parallel market to explode. Evidenced "customs seizures of illicit tobacco more and more," says Pascal Marbois, director of public affairs of British American Tobacco (BAT) France.
On the anti-smoking side, it is estimated that government policy, which combines an increase in prices with other measures - reimbursement for anti-smoking treatments, neutral package - but also the rise in vaping, has motivated a significant number of people. to stop smoking. The leading cause of preventable mortality, tobacco kills some 75,000 French people each year.