France raises VAT for non-alcoholic beverages containing sugar

France plans to increase the tax on non-alcoholic and sugar containing beverages as of 1 January 2012 – ie, lemonade, nectar or fruit juices to which sugar has been added. French Prime Minister François Fillon outlined the measures in his 2012 budget plans. Value added tax (VAT) for these beverages is to be raised to 19.6% - the same rate as for wines. According to the French food industry association ANIA (Association des industries alimentaires), the price of a can of such beverages will increase by one cent in 2012.