Prices rising for everything except tobacco

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Prices rising for everything except tobacco

Inflation has become the main political problem in Luxembourg: it’s now reaching 7%. This results in prices rising: +12.5% ​​for fresh fruits and vegetables, for example, or +22% for postal services. Everything is getting more expensive… except for tobacco, which remains affordable compared to neighboring countries.

Admittedly, a Marlboro pack has gone up in price and now costs around €5.50, according to surveyed gas stations. But, firstly, not all brands are affected by this increase, and secondly, the rise in price is reasonable in the context of rising prices for raw materials.

As for tobacco taxation, nothing changes about it: “From January 1, 2023, the tax burden on tobacco products will not change,” writes L’Essentiel, quoting a representative of the Ministry of Finance.

However, a 20 cigarettes pack costs about 5.5 euros in Luxembourg, compared to almost 8 euros in Germany and Belgium and soon to be 11 euros in France — an anomaly for a country with a higher standard of living.

The reason for lower prices might be economic. Last year the state budget received 752 million euros in the form of taxes, in particular, thanks to cross-border workers and tourists buying tobacco products at gas stations. Thus, any decision regarding the price of tobacco in the Luxembourg market should be the subject of «enlightened consultations».

Not everyone’s happy about cheap tobacco

The public is concerned about the smoking situation in the country. According to data provided by the Luxembourg Cancer Foundation, 28% of residents over the age of sixteen have smoked at least once in the past year and 19% smoke daily. Smoking is believed to be responsible for approximately 1000 deaths per year in Luxembourg.

In addition to price increases, the Foundation advocates for a number of measures aimed primarily at children and adolescents. These include the need to continue prevention campaigns, ban all forms of advertising, including indirect advertising, combat passive smoking, and reduce the availability of tobacco products.

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