France raises VAT on sugar drinks to 19.6% in 2012

2 October 2011

France has put forward plans to increase VAT on non-alcoholic drinks in 2012.

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The announcement was made by Prime Minister Fillon as part of the 2012 Budget plans.  The drinks included are: lemonade, fruit juices or nectar with added sugar.  The Value Added Tax rate on these consumables will be recategorised from the reduced rate to the current standard VAT rate, 19.6%.

Experts from the Association des industries alimentaries claimed this would lead to a 1% rise in prices.

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