the Senate increases taxes on tobacco, soda and gambling

2024-11-21 21:15:00

Senators voted on Thursday for several “behavioral” tax increases on sugary drinks, gambling and tobacco, as part of the examination of the Social Security financing bill for 2025. This is how that centrist senator Elisabeth Doineau, general rapporteur for the Social Security budget, presented her amendments aimed at raising taxes on “drinks with added sugars”. Proposals adopted with the support of the government: it will therefore cost 4 cents per liter for the least sweet drinks, and up to 35 cents per liter for the sweetest. A scale significantly increased compared to that voted by the deputies, who had set the first tranche at 3.5 cents and the last at 28 cents.

“Kick the food industry”

The subject of a broad consensus in the Assembly, this measure was taken up by the executive in the text transmitted to the Senate, where its strengthening was again the subject of broad agreement from right to left. As well as the increase in the tax on “sweetened drinks”, voted against the advice of the government.

The senators also ignored the opinion of the Minister of Health, Geneviève Darrieussecq, on tobacco taxation. The packet of cigarettes will thus increase to 12.70 euros on average next year, or 40 cents more than planned in the national plan to combat smoking presented barely a year ago. “If we keep changing plans, it seems a little complicated to me,” explained the minister. In vain: the measure, supposed to bring in 200 million euros from next year while maintaining the target of a package at 13 euros in 2027, was largely validated by 241 votes to 2, with a large abstention from the left who rather defended a package at 16 euros within two years.

Tax measures on health and social fraud

Geneviève Darrieussecq was not more followed on “pouches”, these nicotine sachets in gums or beads to place in the mouth, which she “prefers to prohibit than to tax”. An intention welcomed by the president of the Social Affairs Committee, Philippe Mouiller (LR), but in the meantime “we are putting in the text” this new tax, which will become “automatically obsolete” when these products are prohibited.

The government, on the other hand, won its case on the gambling and games of chance. Rejected in the Assembly, its amendment aimed at raising taxes on lotteries, casinos and other sports bets was re-submitted by Elisabeth Doineau, this time sparing horse racing bets which had caused the horse industry to rear up. The senators, on the other hand, conscientiously opposed all the amendments targeting food and alcohol, with the exception of a tax on advertisements for alcoholic beverages in Reunion, again voted against the opinion of the minister. .

Earlier in the day, senators had approved several measures targeting the pharmaceutical industry, in particular on the “safeguard clause” of the sector in order to guarantee “600 million euros of additional savings” on the drug in 2025 after the slippage spending this year. Same thing for medical devices, in order to recover 150 million more next year. A battery of amendments against social fraud was also adopted, often against the advice of the government. Some at the initiative of the left, against employers convicted of concealed work and caregivers “convicted of fraud”. Others pushed by the right, to inform employers in the event of fraudulent work stoppage and thus allow “a possible disciplinary sanction”. Or to give social security fund agents access to the air passenger file, in the case of allowances subject to residence conditions such as the RSA.

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#Senate #increases #taxes #tobacco #soda #gambling

What‍ are the expected health benefits of ⁣the new ‌sugar tax legislation ⁤on sugary drinks?

### Interview with Senator Elisabeth Doineau ​on ​New Sugar Tax Legislation

**Host:** Welcome, Senator Elisabeth Doineau, general rapporteur ⁤for‍ the Social Security budget, and thank you for​ joining us today⁢ to discuss the recent tax increases on sugary drinks.

**Senator Doineau:** Thank you‍ for having me.

**Host:** The⁢ Senate recently⁣ voted on significant tax increases⁣ for sugary drinks, as part of the Social Security financing ⁣bill for ⁤2025. Can​ you explain the reasoning behind these⁣ amendments?

**Senator Doineau:** Absolutely. Our goal is twofold: to reduce the consumption ​of sugary drinks, which are directly linked to health issues like obesity and diabetes, and to generate additional revenue for our Social Security system. The new tax structure will take effect soon, with rates ranging from 4 cents per liter for the least sweet drinks to as high as ⁣35 ‍cents per liter for the sweetest. This scale⁤ is notably more aggressive than⁢ what was proposed by⁣ the deputies.

**Host:** It seems there was broad consensus across the political‍ spectrum regarding these amendments. What ⁤does that say about the current attitudes toward public health?

**Senator Doineau:** Yes, indeed. The‌ support⁤ from‌ both sides of the aisle indicates⁣ a⁤ growing recognition of the need to⁢ address public health crises. We ⁢refer⁣ to these kinds of taxes as “behavioral” because they aim to incentivize healthier choices among consumers.​ The support reflects⁤ a shared understanding that our health system won’t sustain⁣ itself without proactive⁢ measures against preventable⁣ diseases.

**Host:**‍ There ⁣were ‍some dissenting opinions, specifically from Health Minister Geneviève Darrieussecq regarding the timing and scale of these tax increases. How do you respond to those ‍concerns?

**Senator Doineau:** While Minister Darrieussecq raised valid points about the complexity of changing plans frequently, ‍we believe​ these taxes are‌ necessary and urgent. The evidence shows that similar ‍measures have ‍led to decreased consumption of sugary beverages ⁤in other regions. ‌Ultimately, our responsibility is ​to implement effective policies that‍ protect public health and ⁤ensure the financial sustainability of​ our healthcare system.

**Host:** On a related note, the Senate also approved tax increases ‍on tobacco products. How does this align with the goals of⁣ the sugary drink tax?

**Senator Doineau:** The aim is ⁢consistent across ‌both initiatives: to discourage unhealthy behaviors through taxation. ​Just as we have seen with⁣ soda ‌taxes, raising prices on tobacco products is⁣ intended to‍ reduce consumption and, ⁤consequently, the burden on our healthcare system from smoking-related ⁣illnesses. Each step ⁤we take is about creating a healthier ‌society overall.

**Host:** what do you see as the next steps in‍ this legislative process?

**Senator Doineau:** The next steps involve thorough implementation plans for​ these tax measures and ⁢clear communication ⁤to the ​public​ about their intended benefits. We also need to monitor the​ impact ​of these taxes on consumption patterns⁢ and public health outcomes. It’s⁤ important to⁤ assess their effectiveness continuously and adjust our strategies as necessary.

**Host:** Thank you, Senator Doineau, for sharing your ​insights on these important health initiatives.

**Senator Doineau:**​ Thank you for having me. Let’s continue to ‍work ‍towards a healthier future.

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