French food industry slams new sugar tax plan

France plans a new sugar levy on ultra processed foods to raise 300 million euros in its upcoming budget. The food industry association warns the measure will hurt struggling manufacturers without solving health issues.

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Granulated white sugar and sugar cubes are seen in this picture illustration taken December 16, 2018.  REUTERS/Emmanuel Foudrot/Illustration

France proposed a new tax on high-sugar processed food targeting €300M ($337M) in revenue, drawing sharp criticism from food manufacturers on Thursday. The levy extends existing drinks taxes to ultra-processed items in the 2027 budget. Industry leaders warn the tax threatens vulnerable producers facing margin compression.

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