Palm oil faces major tax increase in France

A French senate committee has called for a massive increase in palm oil taxation as part of discussions on next year's budget for the social security system

The French senate's social affairs committee has called for a major hike in palm oil taxation as part of discussions on next year's budget for the social security system.

An amendment from socialist senator Yves Daudigny adopted by the committee last week would treble the tax to €300 per tonne of palm oil from 2014. The aim is to encourage the food industry to use healthier oils with less saturated fat.

The measure, dubbed the 'Nutella tax' in France because of its impact of major brands such as the popular chocolate hazelnut spread, would also help reduce palm oil's environmental impact in producing countries such as Indonesia, although this environment aspect is not explicitly stated in Mr Daudigny's amendment.

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