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The extraordinary income that France leaves to Spain and enriches the tobacco sector

As of January 1, 2025, France will set the price of tobacco at 12 euros per packet (major brands), and by 2026 13 euros. A drastic measure that follows the roadmap of the French government in its anti-smoking plan, but which is significantly impacted by the recent modification of the law on the importation of tobacco for personal use, which limited it to one carton, or 200 cigarettes, per person.

In this way, and taking into account the abysmal price gap between France and Spain, given that In our country, the average price of a packet of tobacco is only 4.60 euros. (one of the lowest on the continent), there was an unexpected increase in tobacco sales in two of the border areas with the French country.

Specifically, it is the provinces of Girona and Gipuzkoa that have seen their income increase thanks to the extraordinary expenses they have incurred. Thousands of French people cross the border to buy tobacco. From 200 cigarettes (or one carton), the Gauls can now bring back to their country up to 800 cigarettes (equivalent to 4 cartons), 400 cigarillos, 200 cigars and 1kg of chewing tobacco.

The change in regulations in France corresponds to the inequality that existed with other countries in the European Union, which is why the Macron government has only unified a common regulation already in force in the rest of the nations. Although the European regulation does not set a fixed limit, it recommends the transport between the countries of the euro zone of a maximum of 4 boxes per person, so that customs can consider that it is personal use.

This is what the French Minister Delegate for Public Accounts, Thomas Cazenave, claims, who after the change in regulations warned his compatriots that “we have completely changed the logic, we no longer base ourselves at all on a logic of volume and boxes. Customs officers now have the possibility of relying on a set of clues, seizing and sanctioning to all those for whom there is a presumption of trade and therefore of illegal trade.”

More than 10.5 million in one month

According to the Ministry of Finance, In 2022 alone, almost 2.2 billion packets of tobacco were sold in Spainwhich affected state coffers by almost 8.7 billion euros.

The tobacco sector is one of the sectors that contributes the most to the taxes of the Spanish State, with a record in 2023 when it reached almost 9 billion euros. Historical maximum that the Treasury expects to exceed in 2024, partly thanks to the extraordinary income of cities such as Girona and Gipuzkoa, where tobacco sales have increased considerably thanks to a large number of French people who cross the Spanish border to take advantage of the low prices of tobacco in our country.

This is at least what is also reflected in the publication El Correo Vasco, which indicates that in the provincial capital alone, tobacco sales have increased by 40% and now represent half of all sales in the Basque Country. According to the Ministry of Finance From January to May of this year, around 10 million packages were sold in the province of Gipuzkoa.

For its part, and until July, almost 4 million packets of tobacco were sold in Girona, which contrasts with only 3.3 million sold during the same period of 2023.

However, it should be noted that theThe new French regulations have been in force since last April, The increase is therefore notable not only because of French “tourists” who consider Spain as their own tobacco shop, but also because of other external factors.

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Katy Sprout
Katy Sprout
I am a professional writer specializing in creating compelling and informative blog content.
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