France To Tax Energy Drinks
PARIS – The government of France has approved a tax on energy drinks in an effort to minimize the wide consumption of such beverages among young people.
On October 24th the National Assembly of France voted on and approved a new tax on highly-caffeinated energy drinks, to be levied at EUR 1 per litre on all beverages containing more than 0.22 grams of caffeine per litre or more than 0.3 grams of taurine per litre.
The tax is expected to raise an extra EUR 60 million per annum, and is not expected to have any effect on the sale of consumption of coffee and other caffeine products.
The new tax, which is now being commonly referred to as the “Red Bull Tax”, is aimed specifically reducing the consumption of energy drinks amongst teenagers and young adults, especially as a mixture with alcohol.
The measure still needs to be voted on by the Senate, but if it receives approval, the tax could come into effect as early as January 1st 2014.
This is not the first time that the government of France has attempted to enact a tax on the sale of energy drinks, having approved a similar measure last year, although it was eventually deemed to be unconstitutional by the Constitutional Council.
Energy drinks have been a controversial issue in France, having been banned in the country for 12 years, and only coming to the market in 2008.