New tax on cosmetics proposed in France

By Katie Bird

- Last updated on GMT

Related tags Cosmetics France

France’s Social Affairs Commission has proposed a law that would see cosmetics players paying a new tax of 0.25 per cent of their annual turnover.

The proposal was brought by Mr Milon, a senator of the UMP party, and is designed to help finance Afssaps, the French health agency charged with securing the safety of medical products, devices and cosmetics.

According to the amendment put forward by Mr Milon, there is an inequality between manufacturers and suppliers of medical products and devices, which already pay a tax to help finance the agency, and cosmetics manufacturers who do not.

“The proposed amendment has been designed to remedy what seems to be an unequal situation,”​ reads the text.

Evaluating cosmetics requires resources

Since 2007, Afssaps has been charged with evaluating the quality and security of cosmetic products in France.

Milon argues that this service requires the employment of internal and external experts, inspectors and laboratory services, a service which the cosmetics industry in France currently does not support.

Afssaps is currently working at capacity with its current employees and according to the proposed amendment this could start to endanger the success of its missions.

Cosmetics manufacturers, and distributors of products produced outside Europe, with a gross annual turnover of more than €763 000 would be liable to the new tax.

The proposal will be voted on by the CMP (Commission Mixte Paritaire) - the group employed to find a compromise when the National Assembly and the Senate do not agree - at the National Assembly on December 14 and if passed the proposal will be adopted into France’s 2010 finance laws.

As the proposal has not yet been passed the French cosmetics trade association, Febea, would not comment.

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