The French Senate approved an amendment to increase tobacco product taxes on the 21st. This tax reform is intended to raise funds for the 2025 Social Security budget, according to Connexion France's report on November 22nd.
The purpose of this measure is to increase funding for the French social security budget facing a deficit of 16 billion euros next year, while also reducing consumption of such products through fiscal means to alleviate pressure on healthcare services.
The recent tax increase will raise the average price of a pack of cigarettes to 12.7 euros by 2025, which is 40 cents higher than originally estimated in last year's anti-tobacco plan. It is projected to increase tax revenue by about 200 million euros annually. The French government aims to raise the price of cigarettes to 13 euros by 2027.
In addition to tobacco, other tobacco products such as nicotine pouches and chewing gum will also face increased taxes, the Health Minister said that taxes should be increased on these products before they are banned.
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