With consumers facing rising inflation, particularly in the food sector, Woerth claims that an increase in VAT is out of the question, and it certainly seems unlikely that such a controversial measure would be introduced at the same time as consumer's purchasing power is being eroded. However, the report will now be debated by the country's national assembly and could conceivably find favor, given France's rising levels of obesity and associated burgeoning health budget. In 2006, 5.6 million people in France where classified as obese -- an increase of over 150% from the level in 1997.
The report proposes that foods with high levels of fat, sugar or salt are hit by the additional tax and that snack foods, such as pizza and hamburgers, are also targeted. Such a tax would certainly represent a challenge for France's food industry, and it is interesting to consider how manufacturers might respond.