Blog: Dean BestPalm oil could be next ingredient to be taxed

Dean Best | 13 November 2012

Food manufacturers in Europe many have cheered Denmark's announcement to scrap its tax on saturated fat but, further south, French politicians are debating a levy on another ingredient - palm oil.

A committee in the French Senate has put forward an amendment to a government bill containing a raft of proposals to increase taxes that would see the tax on palm oil reach 300%.

The Senate is set to vote on the package of proposals this week; if passed the bill will move back to France's National Assembly, back to the Senate for another reading and then again to the lower house for a final vote next month.

A tax on palm oil has presumably been put forward as a means of raising revenue as the French government looks to improve the country's finances and as a way of alleviating the food sector's impact on the environment in countries like Malaysia, where the ingredient is cultivated.

However, food manufacturers are likely to be concerned about another legislative proposal to hit the industry.

FoodDrinkEurope, the association that represents manufacturers in Europe, said yesterday it "welcomed" the Danish announcement to remove the fat tax. When contacted by just-food today, it refused to comment on the proposed palm oil levy in France.

"As this relates to a french tax the best contact would be the French national federation, ANIA," a FoodDrinkEurope official insisted.

ANIA could not be reached for comment at the time of writing.


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