PARIS—France’s Constitutional Council approved a new tax on sugary drinks that was introduced in August as part of the government’s battle against obesity. The tax takes effect Jan. 1, 2012, and is expected to add €120 million to federal revenues, according to an AFP report.
The tax, equivalent to approximately €1 cent per can, is part of a comprehensive savings program by the conservative government aimed at reducing France's federal deficit in the coming years and preserving the country's imperiled AAA credit rating. Plans also include raising taxes on cigarettes and spirits as well as the elimination of numerous tax write-offs and incentives. Debate over the multibillion-euro package in parliament has been intense in recent months.
Denmark on Oct. 1 became the first country to introduce a fat tax on foods containing more than 2.3% saturated fat, such as butter, milk, cheese, pizza, oils and meats. The legislation was approved by parliament in March 2011 as a way to combat the escalating rates of obesity and heart disease in the Danish country.
