France wants 10 pct rise in cigarette prices-report

PARIS, Sept 19 (Reuters) - France wants cigarette manufacturers to raise prices by 10 percent to plug a growing budget hole, a newspaper reported on Friday.

Le Parisien daily said the government hoped to raise an extra 500 million euros with the increase that would take effect on Jan. 1.

The government did not plan to raise the tax rate, but hoped to get extra revenue by taking the same percentage of a higher selling price. However, it has threatened to increase the tax itself if manufacturers do not put up the price, the report said.

Around 80 percent of the price of a packet of cigarettes goes into government coffers, through a combination of consumption tax and VAT, the paper noted.

The newspaper said the customs office had made the announcement to cigarette makers this week but said the finance ministry would not confirm the report.

The rise would take a packet of Marlboro cigarettes from 5.30 euros to 5.83 euros, the report said. (Reporting by Anna Willard; editing by David Stamp)