Price per pack of cigarettes: tax, margin and increase

Rising cigarette prices in France
The price of cigarettes in France has increased steadily for years due to government efforts to reduce tobacco use. Manufacturers or importers first suggest the retail price, which includes production, distribution, margins, and taxes. However, the price must be approved by authorities, particularly the Directorate General of Customs and Indirect Taxes. Once approved, the price is fixed nationwide, meaning sellers cannot change it. As the article explains, “tobacconists cannot set their own prices, offer discounts, or run promotions on tobacco products.”

How the final price is divided
A pack of cigarettes is made up of three main parts: the manufacturer’s share, the tobacconist’s margin, and taxes. Manufacturers receive about 15% of the retail price, while tobacconists earn roughly 8% to 10% for selling the product. Most of the cost comes from taxes imposed by the state, which represent a large portion of the final price.

The role of taxes
Taxes account for the majority of cigarette prices in France. According to the article, “taxes represent about 75% to 80% of the price of cigarettes.” These include excise duty and value-added tax (VAT). Excise duty is mainly calculated based on the quantity of tobacco produced or imported, using a formula that combines a percentage of the retail price with a fixed amount. If the calculated tax falls below a minimum threshold, the government applies the minimum tax.

Current prices and long-term policy
By January 2026, the average price for a pack of 20 cigarettes reached about 12.50 to 13 euros. Some brands cost more than 13.50 euros, while cheaper options remain slightly lower. Over the past two decades, prices have risen significantly—from around three euros in the early 2000s to about thirteen euros today. This increase reflects France’s long-term strategy to discourage smoking and reduce tobacco consumption.

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