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Fat tax out of the question – for now
Budget minister says there are no plans to raise TVA on salty, fatty and sugary foods, due to impact on spending power.
Budget Minister Eric Woerth says raising TVA on salty and sugary foods is “out of the question” in the current economic climate.
The proposals were put forward by the Inspection Générale des Finances and the Inspection Générale des Affaires Sociales (Igas) with a view to reducing the healthcare budget deficit and tackling obesity – a growing problem in France.
Their report, which was leaked to newspaper Les Echos, said that TVA (VAT) could be increased from 5.5% to 19.6% on products deemed to have an unhealthy level of sugar, salt and fat.
In response Mr Woerth said it was “out of the question to raise TVA on food products, especially during a time when the French are worried about spending power.”
He added that it was not a government report that raised the suggestion however some ideas in the text would be studied by MPs.
