France gets closer to slapping extra tax on palm oil used in food

Paris

FRANCE'S plans to impose an additional tax on palm oil used in food from 2017 moved a step closer on Thursday as the National Assembly approved the levy, which has been vehemently opposed by top producers Indonesia and Malaysia.

However, the extra tax aimed at encouraging the sector to reduce the environmental damage that palm oil plantations can cause, has been sharply reduced from an initial proposal in January and now excludes oils produced in a sustainable way.

Lawmakers on Thursday also agreed to introduce the new tax gradually to soften its impact. The tax would now start at 30 euros (S$46) in 2017 and rise by 20 euros per year to 90 euros in 2020, rather than start …