French 'Cola Tax' Approved: Paris Vows to Fight Deficit and Obesity

Der Spiegel ^ | 12/29/2011 | dsl—with wires

[Olog-hai]

For French residents fond of sugary drinks like Coca Cola, life is about to get more expensive. The country's top constitutional body, the Constitutional Council, approved a new soda tax on Wednesday. The tax, which works out at about 1 euro cent per container, is part of austerity measures passed in France to combat the debt crisis, and is expected to generate around €120 million ($156 million) in revenue for the government. …

The "cola tax," as people are calling it in France, will now go into effect on Jan. 1. French media are reporting that most companies will raise the tax money by increasing their price per drink. Industry sources have told newspapers that soft drink prices could increase by as much as 35 percent.

The tax is part of a comprehensive savings program by the conservative government aimed at reducing France's federal deficit in the coming years and preserving the country's imperiled AAA credit rating. Plans also include raising taxes on cigarettes and spirits as well as the elimination of numerous tax write-offs and incentives. Debate over the multibillion-euro package in parliament has been intense in recent months. …

Of course, the tax will not be applied exclusively to Coca-Cola products, but rather to all soft drinks, including French favorite Orangina.

More than 60 members of parliament in the opposition had signed on to a petition to the Constitutional Council that was critical of the legislation. With the council's rejection of the complaint, the legislation will now go forward. …

[Myrddin]

Common American "soda" was priced very high for very small portions when I was last in Europe in the 90's. This will probably kill what remaining market existed.

[JSteff]

So is our current administration advising other governments now?

[Lazlo in PA]

I know one nit wit in the WH is excited about this concept of gov't control linked to revenue enhancement.

[kearnyirish2]

Funniest scene in “National Lampoon’s European Vacation”: Chevy Chase orders two Cokes, and the French waiter says, “Ah, champagne Americana!”.

He then proceeds to discuss his wife & daughter in graphic terms the Griswolds can’t understand, smiling the whole time. Clark is impressed with how friendly they are.

[hoosierham]

A one cent tax and the industry will increase prices 35 percent?

Methinks the industry is gouging the French consumer .

[albie]

This’ll lead to anarchy! Nothing angrier than a skinny broke Frenchman.

[PUGACHEV]

There is something to the controversy over high fructose corn syrup that replaced sugar in our soft drinks several decades ago. I never thought so until I started buying Coca Colas "Hecho en Mexico" from the local Walgreens which, according to the label, are made with real sugar. You can taste and feel the difference immediately. The sugar-made cokes do not make you tired like the corn syrup cokes do, and they have a much sharper and pleasing taste. Once you've tried them, it's hard to go back.

[Mister Da]

I’m getting real sick of the tax it or ban it mentality of the nanny state.

The problem of obesity is one of inactivity, & not consumption.

It would be far more proactive to encourage sports & exercise, rather than more & more prohibitions. Soon, we will be limited to spinach & raw tofu.

Note that mountain climbers require 5000+ calories a day to SURVIVE a major climb, but you never see a fat mountain climber.

[Oldeconomybuyer]

This is austerity to help relieve their debt crisis?

Regulatiion and taxation will not increase investment, economic activity, and growth. Liberals are universally fools. Dangerous too.

[Myrddin]

I got a laugh out of that scene. The subtitles were hilarious.

[kearnyirish2]

There are still some funny movies made, but few that stick with you like that one.

“I could bring you dishwater, you wouldn’t know the difference”.