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New French Report Calls for Junk Food Tax

Source: FLEXNEWS
06/08/2008

6 August 2008 – An official report supports the introduction of a tax on the most unhealthy foods in a bid to fight rising obesity levels in France.

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Soft drinks, ice creams, crisps, pizzas, hamburgers and other so-called “junk foods” could all be hit by the controversial measure.

A 1% tax on sugary drinks was voted last year, before being repelled pending a report on the feasibility of such a measure. The report, which was handed to Budget Minister Eric Woerth and Health Minister Roselyne Bachelot at the end of July, highlights the practical and political issues of such a tax, whilst deeming it justified.

The authors of the report admit that the efficiency of a tax in raising awareness is not guaranteed. The tax would therefore be a contribution to the French health system, whilst at the same time sending a “signal to consumers and the agro-business”.

The report advises against the creation of a brand new tax but calls instead for a hike in existing taxes on the most unhealthy products. Foods which are too high in fat, sugar or salt would thus be hit by a 19.6% VAT rate, up from 5.5% at the moment. The 19.6% rate would also apply to snack foods, such as sandwiches, pizzas, and hamburgers. Taxes on alcohol would have to be raised as a pre-requisite to the new measures being introduced, the report adds.

The issue is a sensitive one in the light of high food inflation and stagnating purchasing power, which have been worrying French households and decision-makers alike. The new tax measures would also impact lower-income French households the most, as their diet seems to be least healthy.The government is therefore unlikely to unveil the “nutritional tax” as part of its budget proposals in the autumn, according to media report.

The number of obese people in France reached 5.9 million in 2006, up 2.3 million from 1997. Some 41.6% of the French population is described as either overweight or obese.



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