The price of cigarettes in France has been rising steadily for years, largely because of government policies designed to reduce tobacco consumption. Tobacco product prices are first proposed by manufacturers or importers, who calculate production costs, distribution expenses, commercial margins, and mandatory taxes. However, these proposed prices are not final until they are reviewed and approved by the French authorities.

The approval process is managed mainly by the Directorate General of Customs and Indirect Taxes, which ensures that all prices comply with national regulations. Once approved, the price becomes official and must be applied uniformly throughout the country. This means that tobacconists are not allowed to set their own prices, offer discounts, or run promotional campaigns on tobacco products.

The final retail price of a pack of cigarettes is made up of three main parts: the manufacturer’s share, the tobacconist’s margin, and state taxes. Manufacturers generally receive about 15% of the retail price, while tobacconists earn between 8% and 10% for each pack sold. The largest portion of the price, however, comes from taxation, which accounts for around 75% to 80% of the total cost.

These taxes mainly include excise duty and value-added tax (VAT), both of which are regularly adjusted by the government through financial legislation. Excise duty is calculated mostly on the quantity of tobacco produced or imported rather than on its retail value. This tax follows a mixed formula that combines a percentage of the retail price with a fixed amount based on the quantity of tobacco, making taxation the main factor behind the high cost of cigarettes in France.