No increase to tobacco tax in France for 2025, says new government

The new government does not have any plans to increase taxes on tobacco in 2025, a minister has confirmed. 

“In the [government’s budget, announced last week], there is no further increase to the tobacco tax,” said Minister for the Budget Laurent Saint-Martin on October 17 at a meeting with tobacconists. 

“Indexation to inflation [for tobacco products will be maintained,” he added and current aid levels for tabacs will be maintained.

The price of many tobacco products, from loose tobacco to cigarillos, increased in 2024. 

Mr Saint-Martin also announced a focus on anti-smuggling operations to help tobacconists. 

The operation, dubbed ‘Colbert III’, will replace ‘Colbert II’ (which began in 2024), providing additional resources to counter smugglers. 

Colbert II saw 30,000 checks undertaken in 2024 across 15 airports and seven border crossings with 24 tonnes of tobacco being seized and 52 businesses being asked to close, the minister said. 

Around 11,000 security officers were involved, including 5,000 customs officials.

European standardisation?

“Excessive (price) differences with our European neighbours can lead to the weakening of tobacconists, particularly those in border areas, and to the persistence of too large a parallel market,” Mr Saint-Martin said. 

This is particularly the case in the south-east of France, near the Italian border. 

Read more: Cross-border shopping: what do people in France head to Italy to buy?

The French government will “contact the European Commissioner responsible for taxation in Brussels to make concrete progress on tobacco taxation,” and “rebalance” border tobacco prices, the minister added.

However, he did not give a concrete date for when this may happen.

Vaping tax and potential monopoly 

Although there is no tax on tobacco, a €0.15 per millilitre tax on vaping liquid has been included in the budget. 

It is expected to raise up to €200 million per year, but has been denounced by the industry’s trade union, which said it will punish independent retailers.

The tax will not apply to ‘puffs’ (single-use vapes) which are expected to be banned in France. 

Read more: EU gives go-ahead for France to ban disposable vapes 

In addition to the tax, Mr Saint-Martin said he was ‘favourable’ to allowing tobacconists and tabacs to have a monopoly on vaping products that contain nicotine. 

Currently, they have a monopoly on tobacco products. Vapes can be sold in multiple stores, including dedicated vaping shops. 

Read more: Disposable vapes recalled in France due to packaging error