PARIS — Coca-Cola said Thursday it has suspended plans for a euro17 million ($24 million) investment in France to protest a tax on sugary sodas that’s part of government efforts aimed at shrinking the country’s huge debts.
The investment in the factory in Pennes-Mirabeau in southern France is on hold pending parliament’s debate on the tax, said Tristan Faradet, head of Coca-Cola Enterprise, which produces and markets the company’s drinks in France.
The government says the tax will raise euro120 million. It’s part of a bill aimed at reducing the deficit of the public health care system, itself a component of a series of spending cuts and tax increases being discussed in parliament this month.
“It is necessary to put the brakes on the development of obesity, which weakens the health of the people concerned and represents, over the long term, a large cost for the health care system,” the government’s proposal reads.
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Category: Business/ Economy
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