French Government Considers CBD Flower Sales Monopoly for Tobacco Shops
France considers granting tobacco shops a monopoly on CBD flower sales, sparking industry concern over potential market restrictions and black market risks
Key Points
- 1French government considers CBD flower sales monopoly for tobacco shops
- 2MILDECA reportedly working on excise tax and distribution restrictions
- 3Industry stakeholders express concerns over potential black market
- 4Regulatory changes could be part of 2024 Finance Law, effective January
- 5Lack of transparency in government discussions frustrates stakeholders
In France, the regulation of CBD flower sales is under scrutiny as the government considers granting a monopoly to tobacco shops. A meeting to discuss this was postponed due to internal disagreements and social unrest, highlighting the complexities involved in shaping the future of CBD regulation in the country
The idea of a monopoly has been circulating for some time, although it hasn't been officially requested by tobacco retailers due to the high taxes associated with tobacco products. CBD, however, currently offers a more favorable tax situation, making it a more attractive product for retailers
According to Newsweed, the Interministerial Mission for Combating Drugs and Addictive Behaviors (MILDECA) is reportedly working on tightening the CBD flower market. The plan would involve imposing an excise tax and limiting distribution to tobacco shops, with production remaining in the hands of active farmers under specific contracts
MILDECA has not confirmed these plans, but past communications suggest they are exploring regulatory frameworks for CBD sales. Philippe Glory from the Confederation of Tobacco Retailers acknowledges that discussions about excise duties are happening, although exclusivity for tobacco shops isn't guaranteed
The potential regulatory changes have sparked concern among industry stakeholders, who fear it could lead to a CBD black market if shops are forced to close. There is also uncertainty about whether these changes will be included in the 2024 Finance Law, which could come into effect as early as January 1, 2024
Politicians and industry groups, including the Syndicat Professionnel du Chanvre, express frustration over the lack of transparency in the government's process. Many stakeholders are left in the dark, as meetings and decisions appear to be happening behind closed doors, adding to the uncertainty of the CBD sector's future in France