The victim discourse of tobacconists does not reflect reality
October 21, 2024
Par: National Committee Against Smoking
Dernière mise à jour: October 21, 2024
Temps de lecture: 4 minutes
A report by the Alliance Against Tobacco highlights the extent of public aid granted to the tobacconist network, despite the regular growth of their revenues from tobacco sales, and their multiple violations of regulations. The association recommends putting an end to this financial support, decried by the Court of Auditors for several years.[1].
Tobacco gains tripled since 2007
The report shows in particular that tobacconists' income has been steadily increasing for years, in particular due to the various tax policies on tobacco. Indeed, since tobacconists are paid on the basis of a discount, i.e. a proportion of the sale price of a packet of tobacco, when the price of the latter increases, the tobacconist's remuneration increases mechanically. This discount has also been regularly increased by the public authorities. As a result, the report estimates that tobacconists' earnings from tobacco sales will have reached two billion euros in 2023. Thus, on average, a tobacconist receives 90,000 euros in pre-tax earnings, three times more than in 2007. However, tobacco sales only correspond to 45% of the retailers' turnover. The report recalls that in 2021, a tobacconist received on average nearly 30,000 euros from the sale of gambling games from Française des Jeux (FDJ).
Strong financial support from public authorities for tobacconists
In fact, according to a 2018 analysis by the Federation of Approved Management Centers, the profession of tobacco-games-newspaper retailers is the "fourth most remunerative among the 77 professions of very small businesses in trade and crafts in France." Despite the good economic health of this network, tobacconists benefit from strong financial support from the public authorities, despite recurring criticism from the Court of Auditors. Thus, since the first tax increases on tobacco, tobacconists have benefited from various Future Contracts, representing a cumulative €4.4 billion between 2004 and 2007. The report highlights in particular the aid for processing, estimated at €20 million per year, the objective of which is to help tobacconists encourage diversification to reduce their dependence on tobacco sales. The report shows in particular that this fund is used by tobacconists with the aim of maximising the profitability of sales, including through the development of other addictive products. Thus, a document from the Confédération des buralistes dedicated to this subsidy explains that its purpose is to "help make [the] point of sale more commercially efficient" so that "the network adapts to the situation of the tobacco market but also to respond to new uses and consumer expectations", without the objective of combating smoking being mentioned.
The Alliance against tobacco wants an end to public aid for the profession
In this perspective, the Alliance against tobacco calls for the implementation of a policy of control of tobacconists, as well as to strengthen the sanctions for retailers who do not respect the law. In Quebec, the dedication of 28 inspectors has made it possible to reduce the rate of violations of the ban on sales to minors from 63% in 2003 to 7.5% in 2017. Above all, the report recommends putting an end to financial support for this profession by the public authorities, as well as imposing complete transparency between tobacco retailers and public decision-makers. Such recommendations are in line with those made by the National Committee against Tobacco since the early 2010s. In its White Paper published in 2022, the CNCT also calls for a review of tobacconists' remuneration, which is considered to be an incentive to sell tobacco.
FT
National Committee Against Smoking |
[1] Alliance against tobacco, 4.4 billion in public aid for the lucrative activities of tobacconists, 03/10/2024, (accessed 14/10/2024)
National Committee Against Smoking |