FRANCE : Government fights social security strife with beer duty increase

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The French government has announced a rise in duty on beer as it seeks to reduce the country's social security deficit.

According to the Government, the rise in duty will add EUR0.05 to the price of a 'demi' - quarter litre - sold in a bar. The increase, announced earlier today (1 October) will generate an additional EUR480m (US$619.8m) in revenues per year.

Trade body Brasseurs de France, however, believes that the move will lead to an average increase in the price of beer - all distribution channels included - of 15%.

Given that the duty is levied on volume, hardest-hit will be six packs, the increase varying between 20% and 30%.

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