France may double 'soda tax'

Bill Bruce13 Oct 2011

The French budget minister Valérie Pecresse has said that the government is considering doubling the proposed tax on sugary drinks, including soft drinks, sweetened juices and waters.

If these measures are adopted on 1 January 2012, the doubled taxation could generate €240m a year. When the tax was first proposed, it was at the rate of ¢1 per 33cl can and has now risen to 2 euro cents.

Diet drinks, such as Coke Zero will be exempt from the tax, and fruit juices and mineral waters will also be spared. The tax has been presented as both a revenue-raising measure and an attempt to combat growing obesity. France has a growing obesity problem. Latest figures give France an obesity rate of 14.5%, up from 8.5% in 1997.

The soda tax follows a new levy imposed by Denmark on foods with high fat content. The tax, which came into force on 1 October, increases the price of products by €2.15 per kg of saturated fat.

Source: Flexnews/FoodBev