The French government needs to take actions in order to reduce the debts. An increase on tobacco tax will bring in more money (up to 1 billion euro) to the public treasury.
The price increase on cigarettes is not popular among the French inhabitants since 30 percent of the population aged 18 -75 years are smokers.
Critics argue that many French smokers instead will buy their cigarettes abroad, for example in Spain, Germany, Belgium and Italy, all of which offer much lower prices.
In addition to the increased tobacco tax, there will also be increased tax on beers which will bring in approximately 500 million euro extra to the public treasury.
The French Ministry for the Economy and Finance has just released new details of France’s drive to increase its investment attractiveness to boost employment and business in the country. Read more