France: The Higher Tobacco Price is for Monday

Source from:  Racers Republic 01/13/2014

The decree on the rising price of tobacco has been published this Saturday in the Official Journal . After an increase of 40 cents in October 2012 and 20 cents in July, the third increase in 15 months, 20 cents will be effective Monday.

The Higher Price is for Monday

Now, the price of the cheapest package like Chesterfield and Lucky Strike Silver goes to 6.50 euros. Marlboro, the most sold in France will be shown at 7 euros. As for rolling tobacco, it will undergo an increase of 50 cents after experiencing an increase of 40 cents in July 2013.

For the government , "the more sustained increase in the price of rolling tobacco is explained by the desire to curb the sale of this particular product, the more consumed by young people" had said Bernard Cazeneuve , the budget minister, recalling that the government's goal was to achieve an overall decline in consumption . "We need to increase the price of tobacco regularly for consumption decreases, it is a public health goal that Marisol Touraine and I share," was hammered Budget Minister. Each year, tobacco kills about 73,000 people.

Initially, the government had asked manufacturers to raise prices by 40 cents. All were willing, but the Philip Morris group. The market leader would have seen his pack of Marlboros pass the symbolic 7 euros with the risk of losing market share.

Tobacconists Head Wind

But the government has mostly yielded to tobacconists. November 24, Montredon Pascal, President of the Confederation had warned that his corporation did not want an increase greater than 20 cents per pack. "If there must be an increase in the price of tobacco, it must correspond to the reality of the VAT hike. We recognize that the effort must be shared, but it must be fair, he explained. An increase of 35 to 40 cents would be irrational. We do not accept it. "According to him, tobacconists face down 9% market share and increase purchases in parallel networks which represent nearly 23% of laconsommation. Especially since quotas on border purchases were repealed.

Moreover, the president of the Confederation of tobacconists Wednesday asked the government to implement a national plan of action against the parallel market. "Accept a proportion so important if a particular tobacco product is out of control is to open the way to other traffic on other sensitive products, such as pharmaceuticals or those of the food, "said Pascal Montredon. Enditem