Price per pack of cigarettes: tax, margin and increase

Cigarette prices in France have risen steadily, mainly due to government policy. Although manufacturers suggest prices, authorities must approve them. Most of the cost comes from taxes, with smaller shares going to manufacturers and retailers. As noted, “taxes…make up the vast majority of the final price,” showing the focus on reducing smoking.

The tax system is strict and uniform. It includes excise duty and VAT, both controlled by the state. The excise is calculated as either a percentage plus a fixed amount or a minimum tax—“the greater of the following two amounts.” Prices are the same everywhere, so shops cannot compete by lowering them.

Prices have increased sharply over time. A pack cost about €3 in the early 2000s, reached €10 by 2020, and now averages €12.50–€13 in 2026. A recent rise added “around +50 cents,” with some packs going up by €1. Even cheaper brands are getting closer to standard prices, reducing the gap.

These increases are intentional. Tobacco prices are linked to inflation and used as a tool to cut smoking rates. The policy is driven by health concerns, as smoking causes “more than 75,000 deaths annually.” Other measures include plain packaging and wider smoking bans in public areas.

Prices are expected to keep rising. If trends continue, a pack could reach €20 within ten years and possibly “around 26 euros by 2040.” While this may improve public health, it also leads some people to buy cigarettes abroad or turn to illegal markets.

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