Price per pack of cigarettes: tax, margin and increase

Cigarette prices in France have risen steadily over the past two decades, largely due to government policies designed to discourage tobacco consumption. Unlike many other consumer goods, tobacco prices are tightly regulated by the state, meaning retailers cannot freely set their own prices or offer discounts.

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How Cigarette Prices Are Set in France

In France, tobacco manufacturers or importers first propose a retail price for their products. This price includes several components such as production costs, distribution expenses, and commercial margins. However, the proposed price must be approved by the government before it can be applied nationwide.

The authority responsible for overseeing this process is the Direction générale des douanes et droits indirects, which ensures that pricing complies with national regulations.

Once approved, the price becomes official and must be applied uniformly across the country. Tobacconists — licensed retailers who sell tobacco products — are not allowed to adjust prices, run promotions, or offer discounts.

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The Three Components of the Final Price

The retail price of a pack of cigarettes in France is generally divided into three main parts:

• Manufacturer’s share – roughly about 15% of the retail price
• Tobacconist’s margin – usually between 8% and 10%
• Taxes imposed by the state – approximately 75% to 80% of the total priceRead More Below