French CBD Agricultural Sector Faces Threat from Proposed 25.7% Excise Tax in 2026 Budget

The French government's proposed 2026 budget includes a significant 25.7% excise tax on CBD flowers, accompanied by regulations restricting sales to tobacco shops and licensed establishments. The Association française des producteurs de cannabinoïdes (AFPC) has issued a strong warning that these measures threaten the survival of France's growing CBD agricultural sector.

The sector has witnessed rapid expansion, growing from just 30 active hemp producers in 2019 to over 1,000 in 2024, generating annual revenues exceeding €850 million. Despite this growth, 85% of the French CBD market in 2024 was supplied by imports, putting domestic producers at a competitive disadvantage. The AFPC highlights that the proposed excise tax and sales restrictions would further undermine French producers by hampering their ability to sell their own products directly, a key income source for many farmers.

These proposed measures form part of the government's broader attempt to align public health and taxation regulations concerning tobacco and smoking products, with further reviews to be conducted by the Agence nationale de sécurité sanitaire de l'alimentation, de l'environnement et du travail (Anses) to determine suitable oversight for CBD products.

The AFPC is urging the government to reconsider its policies to protect the viability of French hemp producers in this emerging agricultural sector and sustain their livelihoods.