BEHAVIORAL TAXES
VICE FISCAL CONTROL REPORT — 2025-2026
Data 2025
Behavioral taxes are the moralizing branch of the tax system. The State taxes what it disapproves of — tobacco, alcohol, sugar — while handsomely profiting from the revenue. The paradox: tobacco taxation still brings in nearly €14 billion a year for Social Security, despite falling legal sales volumes.
TOBACCO — BREAKDOWN OF A €13 PACK
Weighted average price 2025: €12.54 per pack of 20 cigarettes
On January 1, 2026, French Customs still illustrates a low-market pack at €11.50 and a premium pack at €13.50: the political €13 target is not an observed universal floor.
| Component | Amount | % of price |
|---|---|---|
| Excise duty (proportional + specific) | 8.62 \u20ac | ~66% |
| VAT (16.67% included) | 2.17 \u20ac | ~17% |
| Retailer margin | 1.34 \u20ac | ~10% |
| Manufacturer margin | 0.88 \u20ac | ~7% |
| TOTAL TAXES | ~10.79 \u20ac | ~83% |
TOBACCO EXCISE DETAIL
- ▸ Proportional component: 55% of retail price
- ▸ 2026 specific component: €73.30 per 1,000 units (€1.466 per pack of 20)
- ▸ 2026 minimum collection: €381.90 per 1,000 units (€7.638 per pack of 20)
PRICE EVOLUTION
The price of a pack went from ~€1.50 in 1990 to ~€13 in 2026, about a +766% increase. Cumulative inflation over the same period is far lower. The difference is fiscal strategy.
ALCOHOL
2026 rates: spirits €1,932.42/hlap, Social Security contribution €620.47/hlap above 18% ABV, beer above 2.8% at €8.24/hl/degree, still wine €4.19/hl and sparkling wine €10.38/hl. On a 70 cl 40% whisky bottle, excise is ~€5.41 and the Social Security contribution ~€1.74, before VAT.
SODA / SUGAR TAX
Since January 1, 2026, the added-sugar tax is indexed: €4.07/hl up to 5 kg/hl, €21.38/hl above 5 and up to 8 kg/hl, €35.63/hl above 8 kg/hl. Synthetic sweeteners are taxed at €4.50/hl up to 120 mg/L and €6/hl above that. These contributions are included in the VAT base.