France Mulls 'Behavioral' Tax On Wine

(LowTax) - A French Senate Committee is currently examining the idea of whether or not to introduce a dissuasive or "behavioral" tax on wine.

Yet the idea of imposing a new tax on wine has provoked outrage among many Socialist Senators, who highlighted the fact that the consumption of wine has already halved over the course of the last 20 years, and argued that the winemaking industry is only just beginning to emerge from a major crisis.

Questioning whether it would be the right time to inflict such a tax on the sector, the Senators warned against establishing a link between health problems and a reasonable consumption of wine. An increase in the tax on wine would merely send out a negative message, namely that wine is a cause of alcoholism and binge drinking among the young, they said.

The Senators underlined the fact that when consumed in moderation, wine is a national cultural good that must be valued. Wine is one of France's main export products, and the industry supports several hundred thousand jobs in France, the group stressed, noting that EUR1bn (USD1.28bn) already flows each year from the taxation of wine.

Led by general rapporteur of the Senate Social Affairs Committee, Yves Daudigny, the mission was tasked with drawing up a report on behavioral taxation. The mission was set up in order to evaluate the "the pertinence and the effectiveness" of recourse to taxation as a means with which to influence behavior thought to pose a risk to public health.