New increase in the pack of cigarettes, which exceeds 10 euros

Illustrative image of a cigarette.

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Sunday, an annual tax increase takes effect.

Consequence: the price of certain packets of cigarettes has increased, from 40 to 50 cents, thus exceeding the symbolic mark of ten euros.

Since November 1, new tobacco sales prices, set in a ministerial decree of September 28, have been applied by tobacconists.

This is the last 50 cent tax hike scheduled for 2020 by the government - the first having taken place on March 1.

No change next year

These prices should remain unchanged next year, the government having assured that "no tobacco tax will be voted in 2021", as repeated the Minister Delegate for Public Accounts Olivier Dussopt at the congress of tobacconists on October 19.

Since Sunday, the Philip Morris group - which has a market share of around 40% in France, including 26% with its flagship brand Marlboro - therefore sells the packet of Marlboro Red at 10.40 euros, against 10 euros previously, an increase of 40 cents identical to that of Winstons, which go to 10 euros.

For its part, the competitor British American Tobacco has opted for an increase of 50 cents for the price of the package of Lucky Strike, increased to 10 euros, that of Peter Stuyvesants to 10.50 euros and finally for the Rothmans, which now cost 10 euros. .

Japan Tobacco International has done the same, with the price of a packet of Camel at 10.30 euros, or 50 cents more, its Winstons rising to 10 euros.

At Seita, Gauloises Blondes are now 10 euros.

Two euros increase in two years

In France, tobacco manufacturers set their selling prices, but the State can encourage increases by varying taxes, which represent more than 80% of the price.

Each manufacturer then decides to pass on this tax increase in whole or in part, and consequently to maintain, cut or increase its margins, depending on competition and its pricing policy.

In 2017, the government put an end to four years of price stability, significantly raising taxes to bring the price of the package to around 8 euros on March 1, 2018, and since then proceeding to two annual increases of 50 cents, one in March, the other in November, with the stated aim of reducing tobacco consumption.

These price increases caused sales to drop 9.32% in 2018 and 7.2% last year.

The leading cause of preventable death, tobacco kills some 78,000 French people each year.

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