Overview

• The French Senate has voted to raise taxes on cigarettes, sugary drinks, and gambling as part of the 2025 social security funding bill.
• The price of a cigarette pack will increase to €12.70 next year, 40 cents higher than initially planned, with further increases targeting €13 by 2027.
• Sugary drink taxes will rise to between 4 and 35 cents per liter depending on sugar content, exceeding the rates initially proposed by the National Assembly.
• Gambling taxes on lotteries, casinos, and sports betting will also increase, though horse racing bets were excluded from the new measures.
• The tax hikes are expected to generate significant revenue, contributing to a projected €1 billion improvement in the social security deficit, which is now estimated at €15 billion for 2025.