French 'Cola Tax' Starts Next Week

Tax on soda will help state coffers, rising obesity

By John Johnson, Newser Staff

Posted Dec 30, 2011 12:16 PM CST

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French 'Cola Tax' Starts Next Week — Packs of Coca-Cola are pictured in a caddie at a supermarket on December 29, 2011 in Neuilly-sur-Marne, outside Paris. (Getty Images)

Two things in France keep getting bigger: the deficit and the nation's waistline. To fight both simultaneously, a new "cola tax" will go into effect on New Year's Day, reports Der Spiegel. The tax will be a little more than a penny per can on Coke and other soft drinks, and industry insiders warn the move could eventually result in a 35% increase in prices. The government expects the tax to bring in $156 million in extra revenue. Denmark and Hungary have launched similar "fat taxes" on a wider range of products. (Read more France stories.)