Should sugary products be taxed more heavily? The Minister of Health Geneviève Darrieussecq is in favor of taxation “simpler and more restrictive” on sugary sodas.
Car “too much sugar is a poison that causes obesity and associated diseases“ such as type 2 diabetes, she further observed, evoking “diseases which have a significant human cost and a cost for our public health and our financial balances”. She says she wants to bring together “all manufacturers in order to find lasting solutions”with her counterpart at Agriculture Annie Genevard.
Taxation of processed sugars is contested by many manufacturer representativesfrom chocolatiers to bakers to agro-industrial processing.
“Tax surcharge”
Even the media representative of the supermarket leader E.Leclerc, Michel-Édouard Leclerc, estimated on France Télévisions thatand “tax supplement” was not going “not helping pedagogically with the file because everyone knows it's to fill in the gaps” in public finances.
However, the management of pathologies such as obesity and diabetes, and therefore the excessive consumption of sugar which is a factor in the increase in cases, is not neutral for public finances.
The economic research firm Asterès, commissioned by the pharmaceutical giant Novo Nordisk, estimated at the end of 2022 that “the management of obesity and its complications represented an avoidable cost for health insurance, complementary organizations and businesses of 10.6 billion euros per year”. Nearly 80% of these “avoidable costs” weigh on health insurance, compared to 9% on businesses.
This last figure counts the “net production losses induced by work stoppages” and by premature deaths linked to pathologies qualified as “complications of obesity”, cardio-neurovascular and metabolic diseases in particular.
In mid-October, the Montaigne Institute, a liberal think tank, pleaded for a tax targeting agro-industrialists that does not reduce the quantities of sugar in their recipes, after gradual reduction and negotiation with companies. He also called for harmonizing the value added tax (VAT) on all sweet products at 20%, estimating that this could bring 1.2 billion euros each year in additional revenue to the State.
He reported that sugar consumption in France was far too high: almost nine out of ten children and almost half of adults in France consume more than recommended by the World Health Organization.
The Institute was even more alarmist about the cost of “our poor diet” and associated pathologies: “125 billion euros per year” for public finances.
Hidden costs
It is based on a large study carried out by the Food and Agriculture Organization of the United Nations (FAO), published in November 2023 and seeking to quantify the hidden costs, in other words the impact unaccounted for but very real in the global food system.
They are evaluated at more than 10,000 billion dollars per year worldwide.
The French associations Secours Catholique–Caritas France, the Civam Network (Centers of Initiatives to Promote Agriculture and the Rural Environment), Solidarité Paysans and the French Federation of Diabetics have also undertaken an estimate of the costs induced by the model current food in France.
In a study on “the unfair price of our food”published in September, they considered that we “compensated today for the dysfunctions of our food system, to the tune of 19 billion euros” every year, including “11.7 billion euros, at least, for diseases linked to our poor diet”.
The associations also quantified the cost of public support for the French food system: 48.5 billion euros each year, via exemptions from social security contributions (12.7 billion euros) or tax contributions (8.6 billion euros), or the European subsidy paid under the CAP (9.7 billion euros).
