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French Assembly Backs Tax on Alcoholic Energy Drinks

Revenue flows to the health insurance fund, pending a decree that will define the targeted stimulants.

Overview

  • Lawmakers approved the measure Friday as part of Social Security budget debates, extending an existing premix levy to drinks with added stimulants such as caffeine, taurine and guaranine that have been flagged as a risk for young people and popularized by products like Vody.
  • Proceeds from the levy are earmarked for the Caisse nationale de l’assurance maladie (CNAM).
  • The amendment was introduced by Frédéric Valletoux and passed with support from the left, MoDem, Liot and most Renaissance and Horizons members, with Les Républicains and Rassemblement National voting against.
  • A forthcoming decree will specify which active substances fall under the tax, a design meant to prevent avoidance through reformulation.
  • Next steps include a vote on the budget’s receipts section Saturday and a planned overall Assembly vote Wednesday before Senate examination.