Price per pack of cigarettes: tax, margin and increase

The price of cigarettes in France keeps rising, largely driven by taxes and public health policy. Manufacturers propose a retail price (including production, margins, and taxes), but it must be approved by authorities. A pack’s cost is split mainly between taxes (75–80%), the manufacturer (about 15%), and the tobacconist (8–10%). As the article notes, “taxes…make up the vast majority of the final price,” reflecting the government’s goal to discourage smoking.

Taxes include excise duty and VAT, both set by the state. The excise duty is calculated either as a mix of percentage and fixed amount or a minimum tax—“the greater of the following two amounts.” Prices are uniform nationwide, meaning retailers cannot discount or compete on price. This strict system ensures consistent taxation and limits consumption incentives.

Prices have climbed sharply. In early 2000s, a pack cost around €3; by 2020 it reached €10, and in 2026 it averages €12.50–€13. A January 2026 increase added “around +50 cents,” with some packs rising by up to €1. Cartons now range roughly €250–€350 depending on size. Even the cheapest packs, once about €10.40, are now approaching standard price levels, narrowing the gap between budget and premium brands.

This steady rise is intentional. Tobacco pricing is indexed to inflation, and increases are part of a long-term strategy to reduce smoking. The article highlights that smoking causes “more than 75,000 deaths annually,” making price hikes a key deterrent. Policies also include plain packaging, public awareness campaigns, and expanded smoking bans in places like parks and near schools since 2025.

Looking ahead, prices may continue climbing significantly. If trends persist, a pack could reach €20 within a decade and “around 26 euros by 2040.” While effective for public health, these increases also encourage cross-border purchases and illicit trade, as neighboring countries often sell cigarettes for far less.

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