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Tobacconists Angered by Proposed Tax Hike
Tobacconists across France are demanding compensation after hearing that the tax on tobacco products is set to rise again. Prime minister François Fillon announced a 6% tax hike on tobacco as part of his austerity package aimed at reducing France's deficit and bolstering the French economy.
The move has angered tobacconists who say this tax increase comes on top of a 6% tax hike already planned for this year and will lead to an even wider difference in tobacco prices in France compared to its neighbours.
Speaking to the Sud Ouest, the président de la Chambre syndicale des buralistes Luzien Patrick Raynal, said: " After each tax rise, sales drop by 15%. I'm expecting to lose 10-15% of my colleagues in the months ahead." Raynal said the difference in cigarette prices between Spain and France was growing. According to Raynal, a popular brand can be bought in Spain for around €4, is currently €5.90 in France and set to rise to €6.25 if the proposed tax increase comes into force.
The recent tax hikes in tobacco prices have been welcomed by doctors and health experts who say they have witnessed a marked reduction in smoking in France as a result. However, tobacconists have been infuriated at what they see as the destruction of their industry. A national meeting of buralistes (tobacconists) is due to take place later this month in which they will discuss what action to take. Their ultimate aim is to get tobacco prices across the EU harmonised but until that happens, they are demanding compensation to help them adapt to the drop in sales that will ensue after the proposed tax rise comes into force.
Wed, 31 Aug 2011 12:15
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