TAX ON PALM OIL

The return of the tax on palm oil demonstrates once more the dangers and ineffectiveness of this type of ecological tax!

After 3 years of absence, the tax on palm oil returns to the front of the stage. At the initiative of environmentalists, over taxation of this oil is being adopted in the framework of the law under discussion on biodiversity.

Of course, since so attenuated, so that senators proposed a rate to reach 900 euros per ton in 2020, members at the request of the government, have brought the bill to 90 euros.

This initiative is another example of the use of good conscience to try to pass a new tax. Because, of course, the defendants Tax explain that the additional contribution will fight against deforestation in Indonesia and Malaysia and against obesity in France.

Once again, the tax is not here to finance the state, but to direct the behavior, even leaving to interfere in the choice of other countries. Because, let's face it, taxing palm oil returns to punish Indonesia and Malaysia as a neo-colonial reflex surprisingly well from a left government.

It is expected that tax revenues will finance the retirement of French farmers but is it moral ruin the Malay farmer to save retirement French farmer?

Moreover, this is in addition to all other existing taxes already on mineral oils, vegetable or animal and, like all excise suffer from a congenital defect: a calculation not related to the product value tax but to its weight.

Indeed, the oils are, like other excise duties on tobacco and gasoline taxed at a flat rate and not on price. This leads to distort quickly the market for these products. Remember also that this new additional contribution of 90 euros will catch up the delay of palm oil that is currently taxed at 100 euros per ton, against 190 euros for olive oil and 170 euros for peanut oils.

This new taxation will also have to overcome the obstacle of customs duties. Indeed, European law prohibits any member state to establish tariffs in his corner. Now, when a tax is levied only on imported products, the temptation to see a disguised customs duty is great.

Besides the ecological argument is anyway ineffective against a purely French initiative since it is not only depriving children of French Nutella we stop deforestation linked to palm plantations.

Ultimately, the new contribution of palm oil will hit first effect of the consumer portfolio but the moral is safe: it will not hit the palm oil "sustainable." Except that the sustainability criteria in the countries concerned remain unclear. The only thing certain is that this will increase some more checks and paperwork with the sole result in more expensive food for French taxpayers, either because it is taxed, either because it is sustainable!