Tuesday, 24 Apr 2018

The taxation of sodas modulated according to the sugar content


Three out of ten children consume too much sugar, according to the national food Agency (Anses). With the corollary, obesity, diabetes, cardiovascular disease, tooth decay… This is why the social Affairs committee of the Assembly decided on Wednesday evening to overtax the drink the more sweet, by adopting an amendment to the bill funding the social Security by the general rapporteur Olivier Véran.

The excise tax created in 2012 for all sugar-containing beverages is going to be modulated. As well, at over 8 grams per 100 milliliters, the fee will double. Soft drinks, fruit drinks, will be penalized. The tax will triple, from 10 grams, with a line of sight to the colas and energy drinks.

under 5 cents more on a can of cola

This tripling of the rate of the specific contribution, if it was passed entirely on the price, would be a little more than 21 cents increase on a bottle of cola sold for 1.50 euro in the supermarket. The increase would be a little less than 5 cents for the bobbin today charged 80 cents in the vending machine. These are the calculations of the report Hammadi/Louwagie of 2016, which called for a sharp increase in taxes on sugary drinks.

conversely, this modulation will be favourable to flavoured waters, which will not be taxed because they contain less than 5 grams per 100 millilitres (5 kilograms per hectolitre). Iced teas or beverages for the sport will remain subject to the same level as today, as the tonics (7.4 g on average).

Penalty on sweeteners

The industry will not be able to cheat by replacing part of the sugars with sweeteners, because they will then have to comply with thresholds of over-taxation even lower.

It is not a tax return, say meps, even if the authority anticipates a revenue increase, $ 374 million currently. No amount is mentioned, because we do not know the market shares as a function of the rate of sugars. This tax will be allocated to the general regime of the health insurance, so she went to the Mutualité sociale agricole. It will fund the removal of the specific duty on non-alcoholic drinks, which earns $ 80 million per year.

For the plenary session, Olivier Véran will refine its proposed tax by proposing a formula more progressive, to remove the effects of threshold.

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