Luxembourgers will continue to smoke even after price rises

Luxembourg's Court of Auditors has sharply criticised the government's plans to increase excise duties on tobacco products by 5.5% as part of the 2025 budget. Although the increase will raise the price of a packet of cigarettes to 5.50 euros, the measure, according to experts, lacks sufficient ambition to reduce consumption. By comparison, the Netherlands plans to raise the price of a pack to €47 by 2040, which the chamber emphasises covers the health and social costs of smoking.

Despite the excise tax increases, the price of tobacco in Luxembourg remains significantly lower than its neighbours, making it attractive for cross-buying. The Cancer Foundation points out that such small increases hardly make a difference. "High prices are proven to reduce consumption, especially among teenagers," notes Lex Shaul, a spokesman for the foundation. But current prices in the country are still too low to affect smokers' habits.

The example of the Netherlands is often cited as a benchmark in the fight against smoking. Here, excise taxes are raised gradually, creating a long-term strategy. The Court of Auditors asks the question: should Luxembourg focus on a cost commensurate with the harm to health, as other countries do?

Luxembourg's Finance Ministry, for its part, defends its actions by emphasising that excise taxes have increased for the second year in a row, exceeding the average rate of increase over the previous decade. However, the authorities fear that the sharp increase in prices will lead to more consumers buying tobacco abroad.

The Cancer Foundation reminds us that price increases are only one of six elements of the Tobacco-Free Generation strategy, launched in March 2023. The initiative includes a broader set of measures aimed at preventing youth smoking and supporting those trying to quit.