Senate passes beer and palm oil hikes

BEER and Nutella could both be hit by more tax after two amendments were passed during a budget debate yesterday.

However tax on beer will not rise as much as originally planned.

A government plan to raise tax on beer from €2.75 per hectolitre to €7.20 was voted down to €6.50. This translates into a five centimes rise in the cost of a 25cl glass of beer.

The vote took place in the Senate, which also passed a 300% increase in the tax on palm oil, dubbed “The Nutella tax”.

Once instigated, the tax on palm oil will rise from €98.74 per tonne to €300.

France consumes 126,000 tonne of palm oil a year and the new tax is estimated to raise €40 million for the social security budget.

Both amendments could still be thrown out before the bill finishes its journey through parliament.

A. Kniesel / Wikimedia Commons