France sacrifices its CBD hemp industry in the 2026 budget

The adoption of amendment no. 3058 to Article 23 of the 2026 Finance Bill is a major blow to the French CBD hemp sector. Presented as a compromise between the government's initial draft and the Senate's position, the new wording seeks to completely reshape the legal and fiscal framework governing hemp-derived products, assimilating them to tobacco products with usurious taxation.

Despite the assurances given in the explanatory memorandum, many professionals consider this text to be an existential threat to an industry that is still in its infancy. a fast-growing sector over the past eight years.

From legal hemp to «manufactured tobacco»

At the heart of the controversy lies a fundamental redefinition of what constitutes a manufactured tobacco product. The amended article L. 314-3 now adopts an extremely broad definition, including «substances other than tobacco which may be smoked» or heated (and therefore vaporized). This wording makes no distinction between tobacco, nicotine-based products, herbal mixtures or hemp flowers. Consequently, CBD flowers and other inhalable hemp products are treated as manufactured tobacco for tax and regulatory purposes.

This change is far from symbolic. For products to be smoked or heated, the applicable excise rate reaches 51.4 %, combined with a tariff per kilogram and a minimum level of taxation.

The unions, who are working on the subject since the first readings of the PLF 2026, were quick to react. The Union des Professionnels du CBD (UPCBD) called the measure a «clear political signal» that the French CBD sector is considered expendable. According to the union, the combined effect of excise duties, VAT adjustments and a strict authorization regime would mechanically lead to the closure of 90 to 95% of existing CBD stores.

France currently boasts almost 2,000 CBD specialist stores, most of which are independent SMEs or micro-enterprises. According to the UPCBD, these stores play a central role in ensuring product traceability, consumer information and compliance with age restrictions. The UPCBD estimates that the sector generates around 1.1 billion euros in sales, supports 30,000 direct jobs and contributes over 320 million euros a year to public revenue. The collapse of this ecosystem, the union warns, would result in the loss of 20,000 to 25,000 jobs and a net social cost of over 600 million euros a year.

Agriculture caught in the crossfire

Beyond the retail trade, the agricultural dimension is just as sensitive. Nearly 25,000 hectares of hemp are grown in France, and some 1,000 farms depend on CBD as an additional source of income. While 80 to 85% of CBD consumed in France is still imported, the domestic sector has gradually structured itself around traceability, environmental standards and local value creation.

By making CBD produced in France less competitive through taxation, critics argue that Article 23 will paradoxically encourage imports and the parallel market. The Association Française des Producteurs de Cannabinoïdes (AFPC) explicitly draws a parallel with the wider context of free trade agreements such as Mercosur, suggesting that the measure sacrifices a regulated domestic sector while opening the door to cheaper foreign products manufactured to lower social and environmental standards.

Another concern is the reintroduction of an authorization system for the retail sale of CBD and vaping products. According to the amended text, sales would be limited to two categories of outlets: authorized tobacconists and establishments holding an authorization - yet to be created - issued by the State subject to conditions of good repute, training and aptitude.

PSAC warns that this framework could effectively reintroduce a form of monopoly benefiting tobacconists. Although the government denies any intention of transferring CBD sales exclusively to tobacconists, the administrative burden and uncertainty surrounding authorizations could eliminate most existing stores. For the PSAC, the situation is «lethal» for the sector, even if the knife doesn't fall tomorrow. Should it be definitively validated, the implementation of this project will take time, necessary to create new tax categories and issue licenses.

Limited European recourse

At European level, the outlook is hardly reassuring. The Belgium and theAustria have already introduced excise duties on CBD products intended for smoking, setting a precedent that could never be challenged in the European courts. If the’stop Kanavape protects the free movement of legal CBD products, it does not prohibit member states from imposing internal taxes, provided they are not discriminatory. This leaves France with considerable room for maneuver, and the industry with limited legal recourse in the short term.

Procedurally, the situation remains unstable. The use of fast-track legislative tools, notably the possibility of using Article 49.3 or ordinances, is fuelling uncertainty among professionals. As the AFPC notes, these mechanisms enable the government to bypass traditional parliamentary debate, but may also reverse the amendment voted.

The two unions are now calling for immediate mobilization, not only of industry players, but also of consumers. Their message is clear: without visible political and public pressure, the CBD sector risks becoming a collateral victim of tax rationalization and public health tokenism.

In fact, the sector does not reject taxation or regulation per se. has long been calling for a adapted to the real risk profile of CBD, such as a clear VAT of 20% without excise duty.

Edit: Finally, the 49.3 will have saved the industry this year.