05 November, 2024

France: Brewers fear extra taxes on sugar and alcohol could spike beer prices

Brewers are struggling to swallow proposals to increase taxes on alcoholic and sweetened drinks under France's latest budget, currently being debated by parliament. While supporters say the measures would raise much-needed funds for the French health system, beer makers warn they could end up penalising independent breweries already finding it tough to survive, Yahoo!News reported on November 3.

Under pressure to reduce France’s mammoth deficit, the new government is looking for ways to save billions of euros on social security – and raising duties on potentially unhealthy food and drink looks set to be part of the plan.

Members of parliament have proposed amendments to the funding bill that would target alcohol and processed sugar, and specifically high-strength, sweetened beers.

The farthest-reaching proposal would expand the “social security contribution” levied on certain products and allocated to funding national health insurance. Currently applied only to drinks with an alcohol content of 18 percent or more, the revised tax would be collected on all alcohols, including wine and beer.

Another amendment would see a new duty introduced on beers stronger than 5.5 percent, while a further proposal seeks to tax flavoured, sweetened beers containing the equivalent of at least 20 grams of sugar per litre.

Parliament’s social affairs committee has already approved the proposals, which MPs are now debating before a vote on the budget bill next week.

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