The price of a pack of cigarettes has three main components. Among these is the tobacconist’s margin, between 8 and 10% of the total cost. In addition, the manufacturer’s margin is around 15%. The rest of the total cost is mainly taxes, which make up the vast majority of the final price.State Taxes
As for state taxes in France, they represent 75 to 80% of cigarette sales (about 40% for cigars). The tobacconist is subject to taxation that varies according to the retail price. It includes two taxes:
Excise duty on tobacco.
Value added tax (VAT).
These taxes are determined by the government as part of budget laws and are often increased to discourage tobacco use.
VAT (Value Added Tax)
Sales by tobacconists, as well as discounts granted, are not subject to VAT. The VAT rate, integrated into the retail selling price, is 16.66%. In addition, each manager in mainland France benefits from a 10.19% discount on the retail sale of all types of tobacco. In Corsica, this discount is 11.323%.
What is the excise duty on tobacco?
