Faced with the epidemic of junk food and growing food insecurity, the Montaigne Institute is proposing to tax sugary foods more in order to finance a “fruit and vegetable check” intended for the most modest French people.
- The Montaigne Institute suggests harmonizing the VAT rate at 20% for sweet products.
- With this sum of money collected, the latter proposes to create a “fruit and vegetable check” of 30 euros per month for the most precarious French people.
- It calls for collective mobilization and a distribution of responsibilities, which can no longer rest solely on consumers.
Reducing the “food divide” is a public health issue. In a recent report, the Institut Montaigne, a liberal think tank, recalled that France was currently facing several food challenges. On a social level, inflation has worsened food insecurity. Thus, faced with rising prices, 37% of people are unable to eat properly or qualitatively every day. On the health side, cases of obesity (the rate of which has doubled in 30 years), overweight, diabetes and cardiovascular diseases continue to increase, because citizens are turning more and more towards processed, rich foods. in sugar, salt and fats and do not eat enough fruits and vegetables.
Tax sweet products at 20% and finance a monthly check of 30 euros
Faced with this alarming observation, the Montaigne Institute has formulated quantified and tested recommendations to combat the junk food epidemic and food insecurity. Firstly, it proposes to increase VAT on sweet products, namely certain chocolates, breakfast cereals, confectionery, spreads, pastries and even industrial pastries. The tax would thus increase from 5.5 to 20% for the foods concerned.
Another suggestion: provide budgetary support to the 4 million poorest French people to facilitate the purchase of four portions of fruit and vegetables per day. “Additional VAT revenue, estimated at around 1.2 billion euros per year, could be redistributed to almost completely finance the food check” of 30 euros, which the institute advises to be introduced temporarily, until 2027, with an evaluation of its effectiveness at this date in order to decide on its possible extension. She also recommends encouraging the French to obtain fruits and vegetables through restaurant vouchers.
A distribution of responsibilities
“Public policies must now fairly distribute the burden of the transition between the different actors in the agri-food chain so that each of them plays their role,” concluded the Montaigne Institute, which believes that responsibilities can no longer rest solely on consumers.