The retail price of tobacco in France is first suggested by manufacturers or importers, who include “production costs, distribution expenses, commercial margins, and mandatory taxes.” However, this price must be approved by authorities, especially the Directorate General of Customs and Indirect Taxes, to ensure it follows national rules. Once approved, the price is fixed nationwide, meaning sellers cannot change it or offer discounts.
Tobacconists are not free to compete on price. They must apply the official rate, so “tobacconists cannot set their own prices, offer discounts, or run promotions on tobacco products.” This ensures consistency across the country.
The final price of cigarettes has three main parts: the manufacturer’s share, the tobacconist’s margin, and taxes. Manufacturers receive about 15% of the price, while sellers earn around 8% to 10%. The largest portion comes from taxes, which account for “about 75% to 80% of the price of cigarettes.”
Taxes include excise duty and VAT. Excise duty is based mainly on the quantity of tobacco, using a mixed formula combining a percentage of the retail price and a fixed amount. If this calculation is too low, a minimum tax set by the state is applied. VAT is also included in the final retail price.
By January 2026, a pack of 20 cigarettes costs about 12.50 to 13 euros on average, with some brands exceeding 13.50 euros. Prices have sharply increased over time—from around three euros in the early 2000s to about thirteen euros today—highlighting France’s long-term effort to reduce smoking.
