French wine tax plans will ‘cork the industry’

(France24) - A pro-wine pressure group has mounted a vociferous campaign against plans to raise taxes and tighten advertising laws for winemaking professionals, claiming such moves will hurt one of France’s most successful export industries.

When one thinks of France, one thinks of wine.

But the country’s armies of wine makers could be forgiven for drowning their sorrows in a bottle of Beaujolais at French senators’ proposal to raise taxes on wine, “quelle horreur!”

Despite the fury of French wine producers, there is one inescapable fact: the tax in France on wine is currently 10 times lower than that on beer. This means a 750ml bottle of wine is taxed at 2.7 cents while the same quantity of beer is taxed at 27 cents.

The proposal is not only looking to raise much needed taxes for France’s empty coffers, senators are also making it a health issue. The proposed bill is also looking to lower national alcohol consumption rates, introduce tough new laws regarding “propaganda and publicity” about wine, and introduce stricter alcohol warnings on labels.

Battle lines drawn

The powerful wine lobby – which represents France’s second-largest export industry – has emerged from its hangover fighting and mobilised a publicity blitz, with the Vin et Société (Wine and Society) pressure group last week pouring cash into a campaign to get the French public on side.