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Tuesday, December 10, 2013

Tobacco: towards an increase of 20 cents in January

The price of cigarettes will increase by 20 cents in early 2014 , increasing to 7 euros per pack of Marlboros , the best-selling brand , understands "Le Figaro" Tuesday, Dec. 10 .

The daily website , which did not cite its sources , said that the tobacco companies have sent their prices to the Customs Administration and the list of new rates published in the Official Journal in the coming days , to take effect on Monday 6 January .

They are all aligned with an increase of 20 cents per pack regardless of the brand , according to " Le Figaro" . Cheapest cigarettes will be 6.50 euros.

The third increase in 15 months

"The government has finally prompted the tobacco industry to limit the increase in their prices ," said the newspaper as an increase of 30 to 40 cents was considered by some manufacturers and Bercy .

Due to taxation and a formation mechanism of complex pricing, VAT increase on 1 January has a greater impact on the price of cigarettes as 0.4 point difference between 19.6 and 20 % .

This increase will be the third in 15 months , after an increase of 40 cents in October 2012 and 20 cents in July. According to " Le Figaro" , Marlboro is the winner of this increase , competitors who campaigned for an increase of 40 cents in the price of cigarettes. Tobacconists had publicly wished limited to 20 cents higher in a market down 9 % in volume since the beginning of the year.

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