A tax to discourage consumers from drinking alcohol? The Ministry of Economy and Finance is working on raising taxes on alcohol, according to Le Figaro and Les Echos. An initiative that could gain momentum in the coming weeks because it is due to be presented and studied next September during the budget review in Parliament.
With this change, the tax will be calculated for the previous year, and not for the N-2 year as it is today. The change was already made last year for another product considered harmful, tobacco, which explains the increase in the price of packs this year, some of which exceeded eleven euros on 1 May.
“minimum” magnification
So in 2024 the alcohol tax can be based on the N-1 year, i.e. 2023, which is marked by a sharp increase in prices. If last year’s consumer price index was 5.2%, then the increase in excises corresponding to indirect taxes on consumption is limited to 1.75% and should not go beyond it.
However, this increase in alcohol prices would be “minimal” and would amount to “just a few cents,” Bersi reassures. In different ways, depending on the type of drink, this will increase the price by 0.3 cents for a bottle of wine and 1-2 cents for the strongest alcohol.
Controversy about this tax
The sector’s professionals are also concerned about this price trend going forward and are expecting an increase of one or two euros. With a 10% increase “at an average price of 19 euros per litre”, calculated including duties and VAT, “this gives an increase of 1.17 euros”, notes the French Federation of Spirits with Le Figaro.
“We are not fighting the sector, but the excessive consumption of alcohol. Our approach is based on prevention and moderation. This is primarily a matter of public health,” said Minister of Health François Braun. He also confirmed that the review of the 2024 budget will be the subject of “discussions” about this taxation of alcohol, in particular spirits.
Alcohol taxation: “Our fight against excessive alcohol consumption (…) PLFSS will be the subject of a debate about the rate of tax on certain products, including those containing alcohol, in particular spirits”, paragraph @FrcsBrown.#PLFSS2024 #DirectAN #kag pic.twitter.com/zzfBcu99Du
—LCP (@LCP) July 18, 2023
PCF National Secretary Fabien Roussel, for his part, strongly opposed the project, asking the government to stop “gaining purchasing power.”
Stop running into popular classes.
These are not taxes on beer, wine and Ricard, even if they should be drunk in moderation, they should be increased.
But those on yachts, jets and caviar!
Restore ISF instead of using purchasing power. https://t.co/74KIGirJHd
— Fabien Roussel (@Fabien_Roussel) July 17, 2023
National Rally MP Gregoire de Fourna also expressed his dissent on Twitter, opposing “the persecution of our wine heritage”.
While French viticulture is facing very serious challenges, the government is planning to increase the burden with a new tax on alcohol.
Stop persecuting our wine heritage!
— Gregory Furnas (@gdefournas) July 18, 2023
If the increase is fixed, the tax could replenish the state’s coffers by several hundred million euros, reports Capital.
Source: Le Parisien
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