The government studies an increase in taxes on cigarettes

In the inflationary context, the executive must decide whether or not to remove the cap on the increase in the tobacco tax indexed to inflation due to the presentation of the budget texts next Monday.

Should we expect an increase in the price of cigarettes in the coming months? This is the question that Bercy acts in any case, in Complete preparation of the Treasury and Social Security Financing Law projects, presented to 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, there is an automatic rule: that of the increase in special taxes with respect to inflation two years ago with a ceiling 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-linked tax increase and take as a base the price increase of the previous year, and no more than two years ago. In 2023, the increase in rights would therefore be between 5 and 7.5%, depending on the inflation rate observed in 2022. A project promoted by the Ministry of Health and that would be integrated into the Social Security budget 2023. In the previous five -year term, Emmanuel Macron had raised the price of a pack of tobacco to a minimum of 10 euros -the last increase dates from November 2020. According to the echoes, the price of the packages would increase by about 70 cents, raising the total price to 11 euros when the package of rolling tobacco would increase to 15 euros. contacted by The Figaro, Bercy services do not confirm these figures and explain that “nothing is arbitrated at the moment.Another option on the table, mentioned in our September 20 issues, is a limited increase to the cheapest packages.

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

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