FRANCE: UNESDA hits out at soft drinks tax proposal

The Union of European Soft Drinks Associations (UNESDA) has slammed a French proposal to more than triple the value added tax on sweetened soft drinks in the country.

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Bernard Reynes, an MP for the ruling UMP party, is reported to have included the proposal in a report to France's Government on the competitiveness of agriculture. The proposal, to increase VAT on soft drinks from 5.5% to 19.6%, is intended to fill an expected budget gap in social security payments to farmers, Le Figaro newspaper reported today (6 July).

A spokesperson for UNESDA told just-drinks that the proposal is unfair and implies that an increase in the price of soft drinks is likely, which in turn will have an impact on the purchasing power of the French consumer.

"This proposal is contrary to what the Government is looking for, which is maintaining the purchasing power of the consumer," the spokesperson said.

"It is also unjustified because it will affect the growth of the industry, which at present, in France, has around 5,000 direct employees and around 21 factories, so it will lower the growth of this sector."

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