In France, illegal or tax-exempt tobacco weighs heavily on public finances. According to a study commissioned by customs and the Interministerial Mission for the Fight against Drugs and Addictive Behaviors (MILDECA), nearly a fifth of national consumption escapes taxation. The assessment, dubbed TAFE (Tobacco Escaping National Taxation), estimates the loss to the state at more than €4,3 billion in 2025, the equivalent of 8,000 tons of undeclared cigarettes and rolling tobacco.
Borders too permeable to the tobacco trade
The majority of this tax-avoided tobacco comes from cross-border purchases, estimated at nearly 6,800 tons. In other words, millions of smokers simply buy their tobacco across the border, where prices are significantly lower. Added to this are purchases made abroad outside bordering areas, duty-free sales, street markets, and a portion of unidentified origins. This data is based on a 2021 barometer, constructed from a questionnaire distributed to a panel of consumers. The regions most affected are those close to bordering countries. The departments of Nord, Bas-Rhin, Moselle, and Pyrénées-Orientales are among those most affected by what experts call the "Tax Gap" (the gap between theoretical taxation and actual consumption). Added to this are inland areas such as Haute-Saône, Jura and Haute-Garonne, proof that the circulation of tobacco outside the market goes far beyond administrative borders.
Young, mobile and pragmatic smokers
The report notes that those who use these alternative channels are generally young, often urban, living alone or as a couple without children. Paris and border areas account for the highest volumes of informal purchasing. While the main motivation remains price—cited by 74% of buyers—other arguments emerge: ease of access, travel opportunities, and, more surprisingly, moral justification. Some consumers believe that by avoiding buying from tobacconists, they are not "funding the state." This behavior, once marginal, is tending to become normalized, fueled by soaring packet prices and the proliferation of illegal access points. In 2025, 17,7% of the tobacco market in France came from the informal channel. Behind this statistic, an entire tax model is faltering, at the very time when the state is seeking to boost its revenues and tighten public health policies. The authorities, aware of this shift, are now increasing border controls and awareness campaigns. But the price differential with neighboring countries, particularly Spain, Luxembourg, and Belgium, continues to fuel smuggling that is difficult to stem. And as long as the temptation to "stock up abroad" remains profitable, off-market tobacco will retain its place in French habits.
