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France Hikes Taxes on Smokers, Manufacturers Gripe
Reuters ^ | 09/24/03 | Catherine Bremer

Posted on 09/24/2003 11:23:56 AM PDT by Pikamax

France Hikes Taxes on Smokers, Manufacturers Gripe Wed September 24, 2003 11:13 AM ET

By Catherine Bremer PARIS (Reuters) - France is waging war on the quintessentially French habit of smoking, slapping on higher taxes that will inflate the price of a packet of cigarettes by 40 percent over the coming year.

Tobacco makers fear price hikes will simply prompt more smokers to buy on the black market or cross the border to stock up on cheaper cigarettes from abroad, foiling the government's plan to rake in more tax revenues from smokers.

Coming on top of a price hike in January this year, the latest increases are infuriating some of the 9 million smokers in France, notorious for its smoky cafes despite a crackdown in restaurants, offices and airports.

They are being imposed just as large slogans like "Smoking Kills," familiar in north America and Britain, are appearing on French cigarette packets under a new European Union ruling.

"Higher prices won't make me stop smoking -- I'll just save money elsewhere," said Clotilde Neveu, 29, smoking a cigarette from among 40 packets she brought back from a trip to Greece.

"The slogans are a more effective way to make people give up than price rises. We're being penalized for the health deficit."

Health Minister Jean-Francois Mattei said on Tuesday that reducing smoking-related cancers was a national priority, as he detailed tax hikes set for October and beyond. "Our aim is to save lives -- 60,000 deaths each year are linked to tobacco, and it will soon be more than 100,000," he said.

The Health Ministry, braced for a 13.6 billion euro deficit in 2004, is also looking forward to raking in some 800 million euros as tax increases raise the price of the average packet of cigarettes to 5.50 euros by mid-2004 from 3.90 euros now.

However, tobacco giant British American Tobacco published a study on Wednesday showing that one in 10 French smokers buys cigarettes from abroad at least once a month.

"This is a concern for BAT France because prices are not the same in different countries. This means a loss of earnings for us and also for the government," said spokesman Olivier Blain.

The head of Japan Tobacco International in France also told Europe 1 radio tax hikes could also encourage smokers to buy cigarettes on the black market.

Helped by the euro, the French are stockpiling cigarettes in Spain, Italy, Belgium, Germany and Luxembourg for as little as 2.90 euros per packet.

"In Greece they are 2.70 euros a packet," Neveu said. "Ever since they went over three euros here I try to get them abroad."


TOPICS: Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: pufflist

1 posted on 09/24/2003 11:23:57 AM PDT by Pikamax
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To: Pikamax; *puff_list; Just another Joe; Great Dane; Max McGarrity; Tumbleweed_Connection; ...
I saw this, was going to post it, but you beat me to it. Thank you!!!!


2 posted on 09/24/2003 11:27:52 AM PDT by SheLion (Curiosity killed the cat BUT satisfaction brought her back!!!)
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To: Pikamax
We were in Denmark in July-August, the price of cigarettes there, is being cut by appr $1 a pack.
3 posted on 09/24/2003 11:32:11 AM PDT by Great Dane (You can smoke just about everywhere in Denmark.)
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To: Pikamax
I remember taking the hovercraft across the English Channel to Calais and then back again, a popular reason for doing so was to buy smokes duty free. In fact, other people would come and ask if you could buy smokes for them (since there was a limit on how many you could buy) if you weren't buying any for themselves. I seriously had no less than a dozen people handing me money to buy two cartons for them (I believe that was the limit) since they had exceeded their own limit and I wasn't buying any.
4 posted on 09/24/2003 11:33:35 AM PDT by sirshackleton
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To: SheLion
The French will soon have a burgeoning black market for cigarettes.
5 posted on 09/24/2003 11:44:51 AM PDT by Just another Joe (FReeping can be addictive and helpful to your mental health)
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To: sirshackleton
Good for you.
6 posted on 09/24/2003 11:45:41 AM PDT by Eric in the Ozarks
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To: Just another Joe
The French will soon have a burgeoning black market for cigarettes.

That's what "I" was thinking, Joe.....

7 posted on 09/24/2003 12:00:24 PM PDT by SheLion (Curiosity killed the cat BUT satisfaction brought her back!!!)
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To: Pikamax
Typical government - facing a deficit/shortfall instead of cutting spending they just increase taxes. why does this not surprise me, particularly in France????
8 posted on 09/24/2003 12:21:54 PM PDT by Gabz (Smoke-gnatzies - small minds buzzing in your business - SWAT'EM)
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To: Pikamax
"Tobacco makers fear price hikes will simply prompt more smokers to buy on the black market or cross the border to stock up on cheaper cigarettes from abroad, foiling the government's plan to rake in more tax revenues from smokers."

Which is exactly what the Democrat NicoNazis are slowly learning here in the US.

9 posted on 09/24/2003 12:32:19 PM PDT by cake_crumb (UN Resolutions = Very Expensive, Very SCRATCHY Toilet Paper)
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To: SheLion
Betcha France's enormous Muslim population is gonna be running most of that black market.
10 posted on 09/24/2003 12:34:03 PM PDT by cake_crumb (UN Resolutions = Very Expensive, Very SCRATCHY Toilet Paper)
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To: cake_crumb
Betcha France's enormous Muslim population is gonna be running most of that black market.

Very suspicious, isn't it!

11 posted on 09/24/2003 12:37:49 PM PDT by SheLion (Curiosity killed the cat BUT satisfaction brought her back!!!)
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To: Pikamax
Our aim is to save lives

Now that's a statement I never thought I hear from a Frenchman.

12 posted on 09/24/2003 12:43:35 PM PDT by mtbopfuyn
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To: SheLion
A pox on the Frogs. In twenty years they'll all be speaking Arabic and smoking Turkish cigarettes.
13 posted on 09/24/2003 12:49:11 PM PDT by metesky (("Brethren, leave us go amongst them." Rev. Capt. Samuel Johnston Clayton - Ward Bond- The Searchers)
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To: SheLion
"Very suspicious, isn't it!"

Yep...well, it would be more suspicious if not for the Muslims caught running the black market on cigarettes in New York state a few years ago. I dunno if that ever really made the national news. Anyhow, it's a great way to fund terrorism. The only controlled substance the Wahhabists don't have a HUGE, organised interest in is alchohol. Blaque Jaques, the NicoNazi could probably care less.

14 posted on 09/24/2003 12:55:34 PM PDT by cake_crumb (UN Resolutions = Very Expensive, Very SCRATCHY Toilet Paper)
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To: metesky
A pox on the Frogs. In twenty years they'll all be speaking Arabic and smoking Turkish cigarettes.

If they aren't already........seems funny they don't want to help us out with Iraq........

15 posted on 09/24/2003 1:32:05 PM PDT by SheLion (Curiosity killed the cat BUT satisfaction brought her back!!!)
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To: Pikamax
They were going to raise the tax on soap, but then there would not have been any additional taxes recieved. Something to do with not enough sales of soap.
16 posted on 09/24/2003 4:52:41 PM PDT by chiefqc
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To: Great Dane
Good to see at least one government is still out there without all their officials collective heads up their arses.
17 posted on 09/24/2003 8:20:16 PM PDT by lockjaw02 ("The phenomenon of corruption is like the garbage. It has to be removed daily." -Ignacio)
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To: lockjaw02
Yep, couldn't believe my ears, but it's true. :-}
18 posted on 09/24/2003 8:42:00 PM PDT by Great Dane (You can smoke just about everywhere in Denmark.)
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