# France Institutes a 160% Beer Tax Increase



## Woody (Oct 30, 2012)

> France, the land of wine, is planning heavy taxes on beer, and that is not going down well with brewers — even in other nations.
> 
> President Francois Hollande is pushing through legislation to increase taxes on beer by 160 per cent to help fund struggling social programs as France tries to contain a budget deficit hit hard by the economic crisis.
> 
> ...


http://ca.news.yahoo.com/french-plans-160-per-cent-tax-increase-beer-191539756--finance.html

Given the history of France and the politics of their new government I don't find this surprising.

However if a 160% tax increase were applied to any item which I consider a staple (others may differ, but I'm of the breed where a cold beer after work is of greater utility than any new fancy in-gadget of the year) I'd either commit the majority of my free time to lobbying, protesting and essentially breaking down and becoming one of those Occupy guys.

What do you think of the tax? Of the governments decision to make such a radical tax increase on a product? Of the business implications? What would you do (Whether it were beer or any product which you consumed regularily)?


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## brad (May 22, 2009)

I would drink wine, like everyone else in France. ;-)


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## carverman (Nov 8, 2010)

Woody said:


> What do you think of the tax? Of the governments decision to make such a radical tax increase on a product? Of the business implications? What would you do (Whether it were beer or any product which you consumed regularily)?


"so let them drink wine!" They should be living in Ontario and drinking beer. Fiberals keep raising taxes and nobody complains or revolts here. 
Besides this "160%" increase is bit misleading.
Lets say the current tax on beer is 5%. If they raise it by 160%..why thats HIWAY ROBBERY! ..13%!. Something that Ontarioans are not used too:biggrin:..
with most 12 packs in the $15 range and a premium 24 approaching $50...but at least we don't know how much tax there is on beer, because it's hidden inside
the price. 

Beer made by Ontario Beer Manufacturers Beer made by Ontario Microbrewers	Beer made and sold at Ontario Brew Pubs
Draft beer	Non-Draft beer Draft beer Non-Draft beer Draft Beer
54.75 ¢/L 69.75 ¢/L 18.26 ¢/L 19.76 ¢/L 20.90 ¢/L

http://www.fin.gov.on.ca/en/tax/bwt/rates.html


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## Just a Guy (Mar 27, 2012)

It's not like they are taxing Tim Horton's coffee...now that would cause a stir.


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## m3s (Apr 3, 2010)

brad said:


> I would drink wine, like everyone else in France. ;-)


Exactly 

France has some weird new policies. I was warned you have to now carry an unused breathalyzer whenever driving there. Maybe not a bad idea since the wine is so abundant. Beer not so much


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## nathan79 (Feb 21, 2011)

There's really no substance in that article. What is the existing tax rate for beer? What is the tax rate for wine?

That said, it would probably make more sense to raise the tax on wine, since it's cheap in France and more people drink it.


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## LondonHomes (Dec 29, 2010)

This tax is clearly being pushed by the wine makers


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## brad (May 22, 2009)

nathan79 said:


> That said, it would probably make more sense to raise the tax on wine, since it's cheap in France and more people drink it.


That's precisely why they're raising the tax on beer instead of wine. If they raised the tax on wine, it would be political suicide: people would be protesting in the streets.

Raising the tax on beer in France is like raising the tax on suntan lotion in Abbotsford, BC.


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## nathan79 (Feb 21, 2011)

I guess they're not very creative in France. If it was BC, they'd just raise the tax on everything. Then once people were good and angry, they'd lower the tax on something minor, or give away some freebie (like free parking in provincial parks). They'd keep doing this until people started to forget that basically everything else still costs more.


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## kcowan (Jul 1, 2010)

brad said:


> Raising the tax on beer in France is like raising the tax on suntan lotion in Abbotsford, BC.


Hey let's compare apples with apples (unless you are drinking the lotion). 

I think a beer tax is just snob appeal. They can't do a tobacco or wine tax.


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## brad (May 22, 2009)

kcowan said:


> Hey let's compare apples with apples (unless you are drinking the lotion).


Given that Abbotsford routinely gets recognized as the rainiest city in Canada, I was simply trying to point out that taxing beer in a country where most people drink wine would be like taxing suntan lotion in a town where very few people have an opportunity to use it. ;-)


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## Woody (Oct 30, 2012)

brad said:


> Given that Abbotsford routinely gets recognized as the rainiest city in Canada, I was simply trying to point out that taxing beer in a country where most people drink wine would be like taxing suntan lotion in a town where very few people have an opportunity to use it. ;-)


I'm willing to bet fewer people buy skip ropes nowadays due to the lower cost & availability of home treadmills. This doesn't mean they should get away with an insane tax increase on skip ropes.


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