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Fizzy drinks tax approved

New tax could reduce obesity and boost state revenues

29 December 2011

A new tax on fizzy drinks has been approved by France’s Constitutional Council.

The increase is intended to tackle the country’s obesity problems, especially amongst young people, as well as boosting shortfalls in the economy.

The soda tax will equate to one cent per can and is expected to increase state revenues by around €120 million. Only drinks with added sugar are affected - products with sweeteners and drinks that are naturally sweet such as fruit juice will not be taxed.

In September, beverage manufacturers Coca-Cola publicly expressed their disapproval following the initial proposal, threatening to suspend a planned €17 million investment at a plant in the south of France. The firm later confirmed that the project would go ahead.
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