While the next increase in the price of tobacco is scheduled for late October, the 2019 finance bill plans to advance the next revaluation by one month. A change of schedule that should lead to an increase of 25 million euros in tax revenue.
A ministerial decree published at the end of September in the official journal modifies the current tariffs. The new prices will come into effect at 22 October. No great upheaval, however: only a few rare references will be impacted. This will not be the case for the following increases.
As part of its public health policy, the government is aiming for an average price of 20 10 packets at the 2020 horizon. To this end, it has set a clear timetable for future increases in tobacco taxation, which should result in an increase of about 50 cents in the price of the package. But the executive has also decided to advance the schedule. Originally scheduled for April, the next rise will finally be advanced by one month, in March 2019. It will be the same for the April deadline 2020, advanced to March 2020. The November 2019 and November 2020 levels are not advanced. Here is the detail of the next increases, according to the 2019 finance bill:
- 50 cents in March in 2019,
- 50 cents in November 2019,
- 50 cents in March in 2020,
- 40 cents in November 2020.
According to the 2019 Budget Preliminary Assessments, this one-month advance in rate increases is expected to bring 25 million in additional revenue to Social Security in 2019 and 2020. The tax hike, it, should bring 500 million of tax revenue in 2018 and 400 million in 2020, according to government projections.
source : Capital.fr/