The French Senate has voted decisively in favor of increasing taxes on tobacco products, sugary drinks, and gambling activities as part of the ongoing debates on the 2025 Social Security budget. The amendments, which received broad support from politicians across the political spectrum in both the Senate and the Assemblée nationale, were passed on Thursday, November 21.
Cigarette Prices Set to Rise, Other Tobacco Products Targeted
If the amendments are included in the final budget, the average price of a packet of cigarettes will reach €12.70 in 2025, a 40-cent increase compared to the previous government's anti-tobacco plan. The tax hike is expected to generate around €200 million annually and serve as a stepping stone towards reaching a price of €13 per packet by 2027. The Senate passed the measure with an overwhelming majority of 241 votes to 2, despite opposition from Health Minister Geneviève Darrieussecq, who cautioned against frequent changes to such plans.
In addition to cigarettes, other tobacco products such as pouches, nicotine sachets, and oral gum/beads will also face tax increases until they are eventually banned, as the health minister intends.
Sugary Drinks and Gambling Also Targeted
The Senate also approved a gradual tax on sodas with additional sugar, starting at 4 cents per liter and rising to an extra 35 cents per liter for the most sugary drinks. However, this measure will require another vote in the Assemblée nationale, as MPs had previously set the parameters at 3.5 cents to 28 cents. A second tax on sweetened drinks (boissons édulcorées) was also passed, despite government opposition.
Furthermore, the Senate approved a motion to increase taxes on lottery tickets, casinos, and sports betting, with an exemption for horse racing. This measure, which the Assemblée initially rejected, will be voted on again by MPs once the bill returns to the lower house.
Aiming to Boost Social Security Funding and Reduce Consumption
The primary objectives of these tax hikes are twofold: to increase funding for France's Social Security budget, which is facing a deficit of €16 billion next year, and to discourage consumption of harmful products through fiscal deterrents, thereby reducing the burden on healthcare services.
Given the strong cross-chamber support for these amendments, they are likely to be included in the final version of the 2025 budget. However, the budget may be passed using the controversial article 49.3, bypassing a parliamentary vote.
