Friday, November 4, 2016

The price of tobacco will climb with the margin of the tobacconists – The Echoes

The contract for the future 2017-2021 between the State and tobacconists is not yet signed, but the secretary of State for the Budget Christian Eckert, announced on Friday at the congress of the profession that their delivery net was going to spend 6.9% of the price of public sales to 8% in five years. the ” I’m very happy with the contract for the future as presented to us Christian Eckert ! “, welcomed Bernard Gasq, the president of the Federation of tobacconists, Ile-de-France, Oise, and Seine-Maritime. He called for an increase of the discount on gross (including discount additional and a pensions levy of 9% to 11%, he got 9,94%.

A gift of election to 2017

But the interest of this revaluation, it is that it focuses on the year 2017, with an increase of 0.6 points from January. An extension of 116 million euros – an average of 4,600 euros per year for each of the 25,000 tobacconists. In a steady state in 2021, the increase will rise to 202 million euros, according to the calculations of a manufacturer of tobacco, reminiscent of a ” present election “ to the tobacconists. the ” Never the remuneration of the tobacconists had risen as quickly, “ in 2017, ” he stressed. What Bernard Gasq retorted : ” You can imagine the damage that the neutral package, we will do ? For once something is up to us, and not to the State or to the manufacturers… “

The industrial, meanwhile, are sounding the alarm. The draft law of financing social Security , in the process of being adopted, already contains two measures that will weigh on their profits, unless they decide to increase their tariffs : a tax of 5.6% on the turnover of the distribution (130 million euros), and a 15% growth of the tax pressure on the tobacco to roll (125 million euros), that should mechanically translate into an increase of 1.10 euro of the sales price for a packet of 30 grams, to 8,80 euros.

A pack of cigarettes 7,33 €

” All these tax increases will inevitably be reflected in the retail selling price of cigarettes and tobacco to roll, and will be, ultimately, paid by the consumer “, explains Benedict Low, director of external relations at Japan Tobacco International France. The increase would be around 20 to 30 cents on cigarettes, and 1.30 to 1.50 euro on the rolling tobacco, estimated a manufacturer. The same calculation at a competitor, that speaks of 1.40 euro for the tobacco to roll, and 33 cents for the cigarettes top of the range, type Marlboro. Of 7 euros, the price of the package should go to 7,18 € to absorb the increase of the delivery net in January, plus 15 cents for the tax on the distribution.

In addition, the government can reassure that there will be no increase in tobacco prices in January. In fact, the manufacturers have not been able to present their prices to the licence in September, as is customary, and will therefore not be able to do waltz the labels in January. They will probably wait a quarter, and cash the increase in costs during this time.


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