Luxembourg Government Approves Tobacco Price Increase Regulation on April 21, 2023

Regulations by 2FIRSTS.ai
Jul.30.2024
Luxembourg Government Approves Tobacco Price Increase Regulation on April 21, 2023
Luxembourg government approves tobacco price increase to reduce smoking rates, sparking concern among parliament members.

According to a recent report from Tageblatt, the Luxembourg government has approved a draft regulation on increasing tobacco prices on April 21, 2023. As announced by the Ministry of Health, the plan is to raise the consumption tax on cigarettes and hand-rolled cigarettes by 0.20 euros starting from July 1. The government hopes that this measure will help reduce the domestic smoking rate.


This move has sparked the attention of parliamentary members. Mars Di Bartolomeo, a member of the Luxembourg Socialist Workers' Party (LSAP), questioned Finance Minister Yuriko Backes about the specific minimum tobacco pricing regulations. According to the regulations, the minimum prices for a pack of 20 cigarettes will be 4.70 euros, a pack of 25 cigarettes will be 5.85 euros, a pack of 30 cigarettes will be 7.05 euros, and a pack of 40 cigarettes will be 9.40 euros. The minimum prices for packs of 50 and 60 cigarettes will be 11.70 euros and 14.10 euros respectively.


Although the Luxembourg government has raised tobacco prices, they are still cheaper compared to neighboring countries. For example, in Germany, the price for a pack of 20 cigarettes is 5.10 euros, which is 0.40 euros higher than in Luxembourg; in Belgium, the price is 7.11 euros, and in France, it is as high as 10.30 euros. There is also a price difference for hand-rolled cigarettes, with Luxembourg being the lowest at 5.90 euros, compared to Germany at 6.35 euros, Belgium at 13 euros, and France at 23.67 euros.


In order to restrict the large-scale cross-border and illegal trade of tobacco, Luxembourg will regularly increase tobacco taxes and actively collaborate with neighboring countries and the customs departments of the UK. The next tax adjustment is scheduled for 2025.


According to a joint study by the Ministry of Health and the Cancer Foundation, approximately 28% of residents in Luxembourg will be affected by the tax rate adjustment, with 20% being daily smokers. Smokers are mainly concentrated in the 25-34 age group (36%), followed by those aged 16-24 (34%).


Moreover, the number of e-cigarette users has significantly increased. In 2022, 13% of respondents reported using e-cigarettes, compared to 9% in 2021. The main users of e-cigarettes are young people, particularly in the 16-24 age group, where 21% use e-cigarettes.


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