Tax increaseEndedTobacco dutiesNational

Increase in excise duties on roll-your-own tobacco

Article 29 of the 2017 social security financing act rewrites Article 575 A of the General Tax Code. For fine-cut tobacco for rolling cigarettes, the ad valorem component rises from 32% to 37.7% of the retail price and the specific component is set at €67.50 per kilogram; the minimum excise is raised to €161/kg in 2017, then €167/kg. Other parameters are set notably at 49.7% and €48.75 per thousand cigarettes, with a minimum excise of €210 per thousand cigarettes. The stated aim is to align the tax burden on rolling tobacco with that on cigarettes. The scale was later replaced by the 2018 social security financing act trajectory.

Measure originators

InitiatorGVT
Christian Eckert
Gouvernement
InitiatorGVT
Marisol Touraine
Gouvernement
Amount
161 €
Impact on public finances
Brings in 120 m €/yr2017 estimate · Social security
Source of the estimate: PLFSS 2017 – Annexe 10 (fiches d'évaluation préalable des articles) (Official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date
1 January 2017

Measure impact

Roll-your-own tobacco consumers: according to the impact assessment, an expected price rise of about 15% (around +€1.10 for a 30 g pack at €7.50). Expected revenue of €120m a year for social security.

Official references

Law number: Loi n° 2016-1827 du 23/12/2016 (LFSS 2017), art. 29
Official Journal: JORF n° 0299 du 24 décembre 2016

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%
5 / 5 steps
Completed
1 January 2017

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

Entrée en vigueur du nouveau barème de l'article 575 A du CGI au 1er janvier 2017.
Completed
23 December 2016

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi de financement de la sécurité sociale pour 2017 (JORF n° 0299 du 24 décembre 2016).
Completed
22 December 2016

Possible referral to Constitutional Council

Constitutional review

Décision de conformité / censure partielle

Décision du Conseil constitutionnel n° 2016-742 DC.
Completed
5 December 2016

National Assembly has the final say

Parliamentary process

Si échec CMP

Vote result
Adopted
Adoption définitive par l'Assemblée nationale en lecture définitive.
Completed
2 November 2016

Debate and vote

Parliamentary process

Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)

Vote result
Adopted
Adoption en première lecture du projet de loi par l'Assemblée nationale.