Price per pack of cigarettes: tax, margin and increase

Rising cigarette prices in France
Cigarette prices in France have increased steadily over the last two decades as part of government efforts to reduce tobacco use. Unlike most products, tobacco prices are strictly regulated, meaning retailers cannot set their own prices or offer discounts.

How prices are determined
In France, manufacturers or importers first suggest a retail price for their cigarettes. This proposal includes production costs, distribution expenses, and business margins. However, the government must approve the price before it can be used nationwide. Once accepted, it becomes mandatory across the country, and tobacconists cannot change it. As the article explains, “retailers cannot freely set their own prices or offer discounts.”

The three parts of the price
The price of a pack of cigarettes generally includes three components. About 15% goes to the manufacturer, while tobacconists usually receive between 8% and 10%. The largest portion comes from taxes imposed by the government, which represent about 75% to 80% of the final price.

Taxes and public policy
Two main taxes apply to tobacco products. The first is an excise duty based on the quantity of tobacco produced or imported, calculated through a combination of a percentage and a fixed amount. The second is value-added tax (VAT), which is included in the final retail price paid by consumers.

A long-term strategy
France has adopted one of Europe’s strongest policies to reduce smoking by increasing tobacco prices. As of January 2026, a pack of 20 cigarettes costs around €12.50 to €13, compared to about €3 in the early 2000s. These price increases are part of a long-term strategy aimed at discouraging smoking and addressing its impact on public health.

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