Despite a decline in tobacco sales quantities related to the lockdown in 2020, French government revenue from tobacco duties is expected to increase by 10%.

A decrease in tobacco sales volume

Because of the confinement caused by the novel coronavirus, cross-border tobacco sales have been almost nil. As a result, smokers bought their tobacco from tobacconists near their homes. Thus, the fall in sales volume was only 4%, reports the radio station RTL.

This drop is partly for the rise in tobacco prices. On November 1st, the cigarette packets will cost another 40 cents more, bringing the average price to 10 euros.

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Significant increase in government revenue

The most recent increases, from November 2019 to March 2020, have allowed the State to increase significantly its revenue from tobacco duties. As the Social Security Audit Committee reports, these revenues should reach €13.9 billion in 2020, i.e. €1.3 billion more than in 2019 (+10%), reports the newspaper Les Échos.

However, the government has confirmed that there will be no new tax increase in 2021.