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A Lower Rate for the Tax on the Palm Oil

Written by: Bridgewest

A-Lower-Rate-for-the-Tax-on-the-Palm-Oil.jpgpalm oil tax will apply for the manufacturing of food in France. The tax was initially ten times larger than the final value, but the Government decided to adopt the lower, more realistic tax. The palm oil tax will be levied per ton of produced food, starting with 2017 and will gradually grow until it will reach its final value in 2020. The measure is part of the biodiversity bill in France and will influence trading companies as well as food manufacturers in the country.
 

The palm oil tax

 
In response to protests from Malaysian and Indonesian exporters of palm oil, the French Government decided to reduce the initial value of the palm oil tax. The initial plan was to levy a 300 EUR tax per ton in 2017 and increase the value to up to 900 EUR in 2020. French lawmakers decided to lower the tax by a significant amount: ten times. Under the new changes, the palm oil tax will start at 30 EUR per ton in 2017, and will increase to 50 EUR in 2018, 70 EUR in 2019 and 90 EUR in 2020.
 
This reduction is welcomed by French companies that operate in the food manufacturing sector but also for the oil producers based in developing countries and who depend on the export with France.
 

The effect of the French palm oil tax

 
The tax will be applied to the palm oil used in food and will be levied per ton. It will not be applied to palm oil produced from sustainable sources and on imports for biofuels. The new tax represents a part of France’s biodiversity bill and it is justified by the fact that palm oil plantations have a role in the deforestation and loss of biodiversity. The objective of the tax and the law that supports it is to reduce the negative impact that the production of palm oil has on the environment.
 
The French Government aims to implement an action plan that will guarantee that the palm oil is sustainable and its producers are verified. Palm oil is used in numerous products, from cosmetic ones to food.
 
If you are a food manufacturer in France and want to know more about how this tax will be levied or what the biodiversity bill stipulates, please contact our law firm in France.
 
 

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