The Minister of Health’s proposal to tax sugary products has sparked heated controversy. This new tax could bring in revenue for the state coffers and contribute to the public health issue, but it triggers the anger of those involved in the agri-food industry.
Could a tax on sweet products see the light of day?-Jacob-Medien-pixabay
A budgetary and health measure
In an interview with La Tribune, Geneviève Darrieussecq, Minister of Health, said she was in favor of taxing processed products with a high sugar content sold in supermarkets. This budgetary measure is part of the 2025 Social Security finance bill, and is part of the amendments to the Social Security budget validated by the Social Affairs Committee. The tax could bring in, according to the Budget Minister, a few hundred million euros. It is presented as necessary from a financial point of view, but also from a health point of view, in order to reduce the scourge of obesity which, in 30 years, has doubled and quadrupled among young people aged 18 to 25. The problem of overweight and obesity affects 8 million French people, each of whom consumes 65 liters of sugary drinks per year. Currently, supermarket customers already pay a tax on sugary products, amounting to 10 to 20 cents depending on the quantity of sugar contained in the product. The first “soda tax” was in fact introduced in 2012, followed by a second on sweet products in 2018. In 2023, these taxes brought in nearly 450 million euros.
A threat to the agri-food industry
The measure triggered strong hostility among players in the agri-food industry, and some protests within the executive. Thus, the Minister of Agriculture and Food Sovereignty, Annie Genevard, is concerned about the repercussions on the French agri-food sector, which, according to her, must already fight to defend its competitiveness on an international scale. Agri-food lobbies, strongly opposed to this decision, welcomed the minister’s position. They say they are ready to continue efforts to support public health issues, but doubt the effectiveness of taxation on sugary products. The non-alcoholic beverages union, which represents the soda trade, highlights the consequences on the purchasing power of the French and the negative effects on France’s leading industry, the agri-food sector. Faced with discontent, the Minister of Health finally revised her copy by opting for taxation limited to sodas and drinks with a high sugar content (lemonades, fruity drinks, etc.) as well as flavored beers from industrial production. For other products, it reminded manufacturers of their responsibility, suggesting that they find alternative solutions to modify the recipes of their products, an option that the United Kingdom also encouraged. You should know that in the United States, a similar tax raised prices by nearly 33%, but contributed to reducing the consumption of sugary products in the same proportion. It seems, according to an economist from INRAE (National Research Institute for Agriculture, Food and the Environment), that an increase of less than 20% has little impact on consumer behavior.
