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Why the price of beer could be about to rise in France

04 November 2024 By Jessica Mason

Brewers in France are facing proposals to raise taxes on alcoholic and sweetened drinks under the French government’s latest budget.

According to RFI reports, the measures being debated in parliament would raise much-needed funds for the French health system, but sting the independent brewing sector which could find itself penalised in the process.

The proposals follow pressures for France’s new government to find ways to reduce the country’s sizeable deficit and build in taxes that could save billions of euros on social security. As such, proposals to also raise duties on potentially unhealthy food and drink has been tabled as part of the plan.

At present, members of parliament in France have proposed a range of amendments to the suggested funding bill that would target alcohol and processed sugar, and specifically high-strength, sweetened beers.

The proposal reportedly aims to expand the “social security contribution” levied on certain products and allocate this towards funding national health insurance. The measures, which are currently only applied to drinks with an alcohol content of 18% ABV or above, would mean that the revised tax could soon be collected on all alcoholic drinks, including wine and beer.

Another suggested amendment to proposals also sees a new duty being introduced on beers stronger than 5.5% ABV, while a further proposal purportedly seeks to tax all flavoured and sweetened beer styles coming out of France containing the equivalent of at least 20 grams of sugar per litre.

The proposals have already been approved by parliament’s social affairs committee, which now only leaves MPs debating the new taxes before placing a vote on the budget bill this week.

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