TOBACCO: A further increase in the price of cigarettes to come.

TOBACCO: A further increase in the price of cigarettes to come.

Still bad news for smokers, the government has decided to raise the level of the “minimum collection” on cigarettes and roll-your-own tobacco, which obviously risks impacting the price of tobacco.


A "GUARDE-FOU" TAX TO AVOID TRADE WARS


On balance, the government has decided to raise the trigger for minimum of perception On tobacco. This tax " railing Helps prevent manufacturers from engaging in trade wars over low prices. It comes in addition to the increase in tobacco rights during the Social Security budget vote in November. Some manufacturers have in fact preferred to lose margins in order to gain market share, which goes against the efforts of the fight against smoking.
The order taken by Bercy and the Ministry of Health must be published this Friday at " Official newspaper ". Manufacturers, who have just had their prices approved in January, will have to start the approval process again before the implementation of " minimum of perception Revised, end of April.

And that will force a lot of manufacturers to adapt. Indeed, with a minimum raised to 213 for cigarettes, which corresponds to a pivot price of 6,60 euros per pack, 40% of products currently available on the market are no longer expensive enough and risk being overtaxed. Between 6,30 and 6,50 euros, there are brands like Winston, Chesterfield, Pall Mall… Specializing in high-end, Marlboro should do well.

As for roll-your-own tobacco, the shock is a little less violent, since the low at 168 means that 14% of the market is not in the nails. While the prices range between 7 euros and 8,70 euros per 30 gram package, the "minimum charge" will be activated as soon as the price is less than or equal to 8 euros.

Source : Lesechos.fr

 

 

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