Tobacco Prices in France: Key Facts
How the Price of Tobacco Is Set
In France, tobacco manufacturers propose the retail price of their products, but it must be approved by the government, particularly by the customs authority. The price includes production costs, trade margins, and taxes.
Taxes make up the largest share of the price—about 75–80% of the cost of cigarettes. The remaining portion includes the manufacturer’s margin (around 15%) and the tobacconist’s margin (8–10%). The two main taxes are excise duty on tobacco and value-added tax (VAT).
Once approved, the price of tobacco is the same across all of France, and tobacconists are not allowed to offer discounts or promotions.CONTINUE READING HERE…
