French government grants 290 million euros in additional aid to tobacconists

On Thursday, January 19, 2023, the Minister Delegate for Public Accounts, Gabriel Attal, signed the five-year extension of state aid to tobacconists, for an amount of 290 million euros. Tobacconists welcome this announcement, and should also benefit from an increase in their share of tobacco product sales.

In an interview with La Voix du Nord, Gabriel Attal detailed the measures of the memorandum of understanding signed with the Confederation of tobacconists[1]. This protocol provides for the extension of financial support granted to tobacconists over five years (2023-2027). €290 million in public aid should thus be paid to the 23,500 tobacconists during this period, i.e. an average of €12,340 for each tobacconist, or €2,468 per year.

However, this aid will favor the 14,000 tobacconists who relay public service missions, such as the payment of taxes and fines. The Confederation of tobacconists, which saw its allocation increase from 5 to 6 million euros in 2022[2], should also be strengthened.

Large sums for renovation work on tobacco shops

The envelope of 100 million euros, at a rate of 20 million euros per year, of aid for the transformation of the tobacconist network should only benefit 5,000 tobacconists over this period. The other establishments have however also been able to benefit from financial support from the State for the diversification of their activities, granted since 2004 after the first Cancer Plan.

Still concerning the works, an envelope of 75 million euros, or 15 million per year, is devoted to securing tobacco shops, where 500 attacks (burglaries, violence, etc.) are recorded each year (or 1/47).

Tobacconists can also count on other benevolent financial provisions. For example, they can benefit from "discount supplements" on tobacco deliveries, and a compensatory discount when they are located in border departments. Above all, they have obtained satisfaction on an old demand that was close to their hearts: the revaluation of their share on tobacco sales. This will be gradually increased from 8.1 % (i.e. 89 cents on a packet at €11) currently to 8.35 % in 2025.

Announced strengthening of compliance with the ban on sales to minors by tobacconists

In return for this aid, the government is demanding rigour from tobacconists, particularly with regard to sales to minors, a measure long demanded by health professionals. A study The National Committee against Smoking thus showed that in 2021, 64,% of French tobacconists sold tobacco to minors, this proportion rising to 77,% in towns with more than 15,000 inhabitants.[3].

Gabriel Attal announced "absolute firmness" and a strengthening of disciplinary sanctions, as well as a suspension of state aid in the event of non-compliance with the ban. A necessity that seems to be necessary since in 2018, only 24 fines were issued for offences involving the sale of tobacco to minors[4], meaning a risk for a tobacconist of being checked once a century for this type of offence.

A three-year plan to combat tobacco smuggling

This aid plan is complemented by another three-year plan 2023-2025 to combat tobacco smuggling.[5]. This three-year plan aims in particular to strengthen the technical resources of Customs, by increasing the number of vehicles equipped with mobile scanners (for a total of 45 million euros), license plate detectors and tobacco detection dogs. The coordinated Customs-Police-Gendarmerie actions will be increased and strengthened by the creation of anti-tobacco trafficking groups (GLATT), the first of which should open in Lille in March 2023.

Tobacconists supported by successive governments

Few professions can boast of being so supported by public finances. In a 2012 report, the Court of Auditors calculated that the total amount of state aid paid to tobacconists amounted to 2.6 billion euros between 2004 and 2011.[6]. Although this seems contradictory to public health objectives, which would rather advocate reducing the number of points of sale, Gabriel Attal was pleased that the number of tobacconist closures had been reduced to 250 in 2020-2021, compared to 400 to 500 between 2012 and 2017. The proximity to the Confédération des buralistes is clearly displayed, since Gabriel Attal declared that he would remain “open to all new ideas for transformation that the confederation may propose”.

Keywords: Gabriel Attal, Confederation of tobacconists, state aid, contraband, Customs

©Generation Without Tobacco

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[1] Lécuyer J, EXCLUSIVE. Gabriel Attal unveils a €290 million aid plan for tobacconists, La Voix du Nord, published January 17, 2023, consulted January 20, 2023. [2] Decrees relating to aid for tobacco retailers, Markets, n°318, November 18, 2021. [3] Press release, Two-thirds of tobacconists sell tobacco to minors in France, a damning observation, National Committee against Smoking, March 10, 2022, consulted on January 20, 2023. [4] Health prevention, Annex to the draft finance bill for 2021, Ministry of Budget. [5] AFP/Le Figaro, Tobacco: Attal unveils a new three-year plan to stop the “explosion” of trafficking in France, Le Figaro, published December 4, 2022, consulted January 20, 2023. [6] Evaluation report: tobacco control policies, Court of Auditors, December 2012. National Committee Against Smoking |