French senate votes for increase in taxes on tobacco, gambling and soda

A packet of cigarettes will cost on average €12.70 next year if propositions are included in final budget

Senators in France have voted overwhelmingly in favour of tax hikes on tobacco products, sugary drinks, and gambling activities as part of debates on the 2025 Social Security budget. 

The upper chamber passed the amendments yesterday (Thursday November 21) after many were widely supported in the Assemblée nationale, with politicians from across the spectrum supporting the changes. 

Certain amendments including tobacco tax hikes and a tax on sweetened drinks were passed despite the government advising against such measures. 

However, centrist senator Élisabeth Doineau, general speaker for the bill in the upper chamber, was in favour of both the motions, calling the sugar tax “a kick in the teeth” for the industry. 

The aim of the tax hikes are to increase funding for France’s Social Security budget – facing a deficit of €16 billion next year – as well as lower consumption of such products through fiscal deterrents, in turn reducing the strain on healthcare services.

The cross-chamber support the amendments received means they will likely be included in the final version of the 2025 budget – which is looking increasingly likely to be passed via the use of controversial article 49.3 as opposed to a parliamentary vote.

Read more: France’s 2025 budget will ‘probably’ be forced through without vote, says PM

What will taxes change?

The tax increases will see the average price of a packet of cigarettes increase to €12.70 in 2025, 40c more than envisaged in an anti-tobacco plan outlined by the previous government last year.

It should raise around €200 million per year, and be a stepping stone to making cigarettes €13 a packet by 2027.

Health Minister Geneviève Darrieussecq urged MPs and Senators against implementing the increase as she is against repeated changes to such plans, however the vote was passed in the upper chamber by 241 votes to 2. 

Many left-wing Senators abstained, as they had wanted a change that saw cigarette prices rise to €16 per packet by 2026. 

The government previously said they would not increase tobacco prices next year, and tax increases on such products were not included in the original draft of the budget.

Read more: No increase to tobacco tax in France for 2025, says new government

Other tobacco products including pouches, nicotine sachets, and oral gum/beads should also face tax hikes, although the health minister is looking to ban some of these. 

The increased taxes should be in place until the products are banned.

A gradual tax on sodas with additional sugar will begin at 4c per litre, rising to an additional 35c per litre for the most sugary. 

However this will need to be voted on once more in the Assemblée nationale, as MPs set the original parameters at 3.5c to 28c. 

A second tax on sweetened drinks (boissons édulcorées) was also passed, also against the wishes of the government.

A motion that the Assemblée initially rejected – increasing taxes on lottery tickets, casinos, and sports betting – was passed by the Senate after an exemption was given to horse racing. 

The Assemblée will vote on the measure again once the bill is shuttled back to MPs.

There were no increases to taxes on alcohol products that were voted through, aside from an increase in alcohol taxes in the overseas Réunion department. 

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