Tax rise would close 1,000 tobacconists

French MPs have approved, against the opinion of the government, two amendments that would raise the tax on cigars and cigarillos in line with that imposed on cigarettes, according to a story in Le Figaro.

The cigar suppliers’ association, Association des Fournisseurs de Cigares en France (AFCF), said that, if the amendments were confirmed, a pack of the country’s best-selling cigarillos would increase by €10.00 to €17.60.

AFCF warned that the measure would cause a drop in cigar sales next year that would translate into a fall in tax revenue of €158 million.

Meanwhile, the tobacconists’ union president, Pascal Montredon, said the price hike would lead to a decrease in revenue for tobacconists specializing in cigars and cigarillos.

If the price increase were applied, about 1,000 tobacconist shops would close down next year, in addition to the 1,000 shops already forecast to close this year.

MP Michele Delaunay, who presented the amendment, was quoted as saying that the main priority was health, ‘because tobacco is the first cause of death worldwide’.