The Secretary of State for the Budget, Christian Eckert, announced on Friday the introduction of a tax that will affect tobacco companies. The tax on roll-your-own tobacco will also increase.
Like the rest of Europe, French teenagers have eased their footing on cigarettes. In 2015, more than one in two 16-year-olds (55%) said they had smoked tobacco at least once in their life, with no difference between girls and boys. And recent use (at least once in the last 30 days) now affects 26% of adolescents, up from 44% in 1999 and 28% in 2011.
Faced with this good news announced in the European ESPAD survey, the government wants to go further in its fight against tobacco among young people. Also, to replenish the Social Security funds (see box), he will not hesitate to type them in the wallet.
Rise in roll-your-own tobacco
The Secretary of State for the Budget, Christian Eckert, in fact announced this Friday on Europe1 an increase in the tax on roll-your-own tobacco which will increase its price by 15%. The aim is to bring the taxation of this method of tobacco consumption, which is very popular with young people, closer to the taxation of cigarettes. “The price of a packet of rolling tobacco should ultimately increase by just over one euro,” said Christian Eckert, while that of cigarettes will not increase this year.
As a reminder, while it is currently cheaper, roll-your-own tobacco is much more harmful. Regarding its toxicity, each rolled cigarette is equivalent to several cigarettes. In question, a particular chemical preparation of tobacco, but also the fact that when cigarettes are extinguished, the incomplete combustion of tobacco is more toxic. It should also be noted that the combustion of tobacco from rolling cigarettes produces more carcinogenic tars. And, despite popular belief, they have a stronger nicotine concentration.
The turnover of manufacturers will be more taxed
The other anti-smoking measure announced this morning by the government will involve the tobacco industry. It will consist of a new tax on the turnover of cigarette distributors. “It will bring in 130 million euros per year,” said Marisol Touraine in The echoes, which will go to the new anti-smoking fund ”planned by the Minister. More precisely, it is Logista, distributor of almost all tobacco in France, which will pay this tax, but the government hopes that it will pass it on to the tobacco companies …
After the last tobacco increase in 2014, manufacturers could also choose, once again, to pass on this tax increase in their turn to the product sold to the consumer. Case to follow.
The improvement in social deficits
“The story of this five-year term is the end of social deficits” is the shock announcement of Marisol Touraine this Thursday in a daily interview The echoes. In 2017, the Minister of Health aims for a virtual return to balance in the general social security system. The objective is displayed: to make the “safety hole” disappear.
In figures, “the general scheme (sickness, pensions, family, work accident), which had a deficit of 17.4 billion in 2011, will be 400 million in balance,” said the Minister on the eve of the presentation of its draft security budget for 2017. And all branches are benefiting from this upturn. Pointed out as the bad student recently by the Court of Auditors, Health Insurance also saw its deficit fall from 5.8 to 4.1 billion euros in 2016. In 2017, the tenant of avenue Duquesne even announced a deficit of 2.6 billion euros for this branch. This thanks to savings in the management of Social Security funds, measures to combat fraud, and new revenue (in particular on tobacco).
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