Crisis: France hikes beer, cigarette taxes to fund welfare

Wealthy retirees to pay more, abortion covered 100%

01 October, 19:22

(ANSAmed) - PARIS, OCTOBER 1 - The French government on Monday announced tax hikes on beer and cigarettes in an effort to reduce the welfare deficit from 13.2 billion euros in 2012 to 11.4 billion euros next year.

The beer tax hike, which translates into 5 euro cents per 25 cl., should bring the state revenue of 480 million euros. At 30 liters of beer per capita a year, France is the next to the last beer consumer in the EU.

Beginning in July 2013, cigarette taxes will rise from 64.25% to 64.7% of the price of a pack, bringing the state 125 million euros. This will probably mean a pack of cigarettes in France will cost more next year, after today's 6.5% rise. In another cost-cutting measure, the state announced it will increase taxes for high-income retirees.

Also on Monday, the state announced it will cover pregnancy terminations 100%, fulfilling President Francois Hollande's campaign promise. (ANSAmed).

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