When the French government has announced its intention to increase taxes on certain alcoholic drinks, a lively controversy broke out in the country. Wine producers and alcohol lobbies immediately expressed their dissatisfaction, while some public health experts applauded this decision. While the debate continues to rage, it is essential to understand the issues surrounding this issue and to assess the possible consequences for the alcohol -free drinks market.
Alcohol taxes in France: a complex system
The alcoholic drinks tax system in France is complex and rests on several indirect taxes. In addition to 20%VAT, alcohols and alcoholic beverages are subject to excise duties, which vary depending on the type of product. For example, quiet wines are taxed at 3.98 euros per hectolitre, while sparkling wines are taxed at 9.85 euros per hectolitre. Academic duties on beer vary depending on its degree of alcohol and the size of the brewery. As for spirits, they are subject to a higher tax, calculated according to the hectolitre of pure alcohol.
The evolution of alcohol taxes: a controversial measurement
According to information available, the Government plans to index expansion duties on the inflation of the previous year, instead of inflation of two years earlier as is currently the case. This measure aims to ensure that the prices of the products subject to the tax evolve at the same rate as current consumer products. However, the exact details of this reform are not yet known, which arouses many questions and concerns.
The reactions of professionals and the alcohol industry
The announcement of this potential increase in alcohol taxes caused a strong reaction from industry professionals. Some believe that this measure is a "double penalty" for them, while they are already facing increased increases, especially due to the increase in the price of glass. Alcohol lobbies also expressed their concern about the economic impact of this decision on the sector.
Arguments in favor of an increase in alcohol taxes
Supporters of the increase in alcohol taxes advance several arguments in favor of this measure. First of all, they highlight the importance of funding prevention and care related to excessive alcohol consumption. They also believe that higher taxes could help reduce alcohol consumption, especially in young people. Finally, some public health experts argue that this measure is necessary to combat the misdeeds of alcohol on society, given the number of deaths and diseases related to its consumption.
The consequences for the non -alcohol drinks market
While alcohol taxes could increase, it is interesting to wonder if it could benefit the growth of alcohol -free drinks. Indeed, the alcohol -free drinks market is often disadvantaged compared to that of alcohol in terms of price and social perception. An increase in alcohol taxes could encourage consumers to turn more to alcohol -free alternatives, thus offering new opportunities for producers of these drinks.
Towards a European harmonization of alcohol taxes?
Another aspect to take into account is the question of the harmonization of alcohol taxes within the European Union. Currently, each country has the freedom to set its own rate of taxation on alcohol, which creates significant disparities between the Member States. Some countries, such as Spain, apply lower taxes on alcohol, which can cause distortions of competition. Harmonization of alcohol taxes could therefore be considered in order to guarantee fair competition between the countries of the European Union.
What to remember?
The increase in alcohol taxes in France is a controversial subject that arouses strong reactions from industry professionals and alcohol lobbies. While the government seeks to find a balance between the need to finance public health and economic concerns, it is essential to take into account the possible consequences of this decision, especially on the alcohol -free drinks market. Whatever the outcome of this debate, it is clear that alcohol will continue to play an important role in our society, but it is also important to promote healthy and responsible alternatives for those who wish to avoid or reduce their consumption of alcohol.
Sanzalc's opinion on alcohol taxes in France
It will surely make the teeth cring but we are not here to please everyone ... At Sanzalc we affirm high and clear that the hypocrisy which reigns at the level of the government on the subject of alcohol does not engage in the 'Optimism on the real motivations at the top of the state regarding the health of the French.
This micro-mac of VAT betrays once again the desire to arrange with friends and here we are clearly talking about collusion to the highest instances of the state of certain decision-makers with alcohol lobbies.
Beyond that, we can also add that the majority of bars and restaurant owners do not play the game at all with the cost of alcohol-free drinks.
As a reminder :
- VAT alcoholic drinks (equal to or greater than 1.2%): 20%
- VAT Alcohol without alcohol / open container (equal to or less than 1.2%): 10%
- VAT Alcohol without alcohol / closed container (equal to or less than 1.2%): 5.5%
Knowing this, how to explain that the majority of alcohol drinks is as (even more) dear than their alcoholic counterparts if not by saying that the tenants are fat on the back of alcohol -free consumers or even very clearly promote the Choice for alcoholic beverages!
