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Friday, November 18, 2011France

A tax on cosmetic products ? again?

©Thinkstock/L'Observatoire des Cosmétiques

It is a kind of  ever-recurring issue … coming back every year due to the diligence of the French Senator Alain Milon (UMP) when the Financial Act is examined by the Parliament. This proposal never went down to the vote process. Nevertheless, he puts it again this year in the text … which leads to some "reactions" from professionals.

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November 18, 2011
Alain Milon is logical … In 2009, and CosmeticOBS-L’Observatoire des Cosmétiques made a paper about it when he made this proposal for the first time: a tax on cosmetic products.
He has just issued again an amendment about the same topic, while the Senate was working on the Social Security financial law.

In his first try, he suggested to put a 0.25% tax on the yearly revenues of cosmetic companies, when their revenues were at least 763,000 €.
This year, he suggests it applies to « any entity that makes the placing of cosmetics on the French market ». This means manufacturers and importers, mainly. The rate would be 0.1% of the sales.

Pay for the Afssaps

The reason? Unchanged for three years: help the French Agency for Sanitary Safety of Health Products (Afssaps), which is in command of the safety of drugs and cosmetics. Alain Milon argues:

"Since 2007, in compliance with European Directives, the Afssaps evaluates the quality and the safety of use of cosmetic products.
These missions are even more important due to the enforcement of the 30 Novelber 2009 European Regulation on cosmetics, which makes it mandatory for the industry to notify serious …

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