From January 1st, taxation on wines and spirits increases in France as the French government seeks ways to fill the void of the social security deficit.
In the past, increase in tax on alcoholic beverages was voted in conjunction with finance laws. Now it will be indexed on annual inflation figures and so be revised every January based on the previous year's inflation percentage.
It is important to know that, each time the consumer buys a bottle of wine or spirits in France, he or she is paying a specific tax (in addition to VAT). This "circulation" tax or "accises" in French is then paid by producers to the State. This is one of the most "controlled" areas of the wine and spirit industry as considerable sums of money are involved (several millions of euros...).
With 1,5% inflation in 2007, the tax on wines of less than 15° increases in January from 2,55 to 2,58 euro cents per 75 cl bottle :
a minimal rise. However, liqueur wines such as Pineau des Charentes or Floc de Gasgogne, and spirits will have, in addition to the indexed tax, another 'social security' tax specific to this range of alcoholic drinks.
On buying a bottle of Cognac for example, you will now be paying 5,24 euros (in addition to VAT) as opposed to 4,97 euros previous to January 1st : 27 euros cents more.
Pineau producer Christian Baudry, who is president of the French Federation of Liqueur Wines, feels that these types of wines are being unfairly prejudiced by this additional taxation.
"We are being milked like dairy cows!"he exclaims. A bottle of Pineau will now be taxed 1,63 euros as opposed to 1,60 previously. If one adds VAT, this totals 3 euros on top of a bottle which sells for an average of 7 euros....
Author:
César Compadre
doc@sudouest.com
S.O. 06/01/09
Translated by Maxine Colas.