Friday, November 4, 2016

The price of tobacco up to finance the remuneration of the tobacconists –

Pack of cigarettes (illustration) – O. Aballain/20 Minutes

COMPANY After a two-month renegotiation of their ” contract for the future “, the 25,000 tobacconists French have got the government on Friday to increase their pay…

The price of tobacco will rise again, to finance the increase of the remuneration of the tobacconists. Explanations. After a two-month renegotiation of their ” contract for the future “, the 25,000 tobacconists French have got the government on Friday to increase their compensation, in part absorbed by a levy on the turnover of the manufacturers, which will, in turn, increase the price of cigarettes after two years of stability.

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A rise of 1.1 percentage points in 4 years

The tobacconists will benefit from a rise in the margin that they receive on the sale of tobacco, which will go from ” 6.9% to 8 % net from the price of the package between 2017 and 2021 “, announced the secretary of State for the Budget Christian Eckert, face-to-550 tobacconists, the second day of their congress in Paris.

” The net increase will be 1.1 point between 2017 and 2021, compared with 0.4 points for the current contract, nearly triple. The increase will be 0.6 percentage point as early as 2017, ” he said. To fund this increase in compensation, the government has decided to introduce a new levy on the turnover of the manufacturers, has announced Christian Eckert.

tobacco increase as soon as January

This collection is in addition to an increase already planned ” tax on roll your own tobacco, which had sales in the too strong growth “, recalled the secretary of State, as well as a further tax, whose creation had been announced in late September, referring also to the manufacturers of tobacco, which could, in turn, bring in a little more than 100 million euros per year to the State.

” It must be the manufacturers which are cutting into their margins, and they can do this because they are very higher in France than they are abroad, ” said Mr. Eckert. The tobacconists are satisfied with the announcements made by the government, which ” respond to the concerns of the profession “, according to Pascal Montredon, president of their confederacy.

A first increase in two years

” The increase in remuneration has to compensate for the additional workload related to the arrival of the neutral package. It is also an accompaniment to the modernization because we are aware that the network must continue to evolve and become less dependent on tobacco, ” he said.

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a Result of this surtax imposed on manufacturers, the latter promise is already reflected on the price of a package of cigarettes, what will be the first increase after two years of complete stability.

The last increase, in January 2014, had increased the price of the package the least expensive at 6.50 euros and the most expensive, including the leading brand (Marlboro), at 7 euros.

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