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Pizza, burgers included in France's 'fat tax'

December 29, 2011

The French government this week clarified which foods will be included in the recently passed tax increase, an initiative aimed at cutting the country's budget deficit.

Pizzas and hamburgers are two of the popular foods that will be included in the higher 7 percent tax, from the previous 5.5 percent rate, according to TVNZ.

Staples such as bread and pastries will not be affected.

France officials announced the new rates to gain confidence from the financial markets that the country will preserve its AAA credit rating. However, the initial list of the items covered under the new tax rate was ambiguous, causing some consumer concern amidst high unemployment and inflation.

The higher tax will only apply to food prepared for immediate consumption, such as sandwiches, quiches and pizzas.

The finance ministry said baguettes, croissants and other pastries will continue to be taxed at 5.5 percent.

Also this week, the French government approved another tax for sugary soft drinks, according to U.K.'s Daily Mail. This move is also intended to feed the coffers, as well as curb rising obesity rates. More than 20 million French people are now overweight and seven million of those are clinically obese — double the figure from 14 years ago, according to France's National Institute for Health and Medical Research.

The euro causes higher pizza, Big Mac prices

Also in Europe, an Italian newspaper reported that the price for pizza in Milan has doubled in the decade since currency shifted from the Italian lira to the euro.

The Corriere della Sera daily researched inflation rates since banks began issuing the euro, specifically focusing on common Italian products.

According to report, the price in Milan for the popular quattro stagioni pizza — a pizza divided into four parts with as many toppings — rose from the lira equivalent of 5.16 euros when the euro began circulating Jan 1, 2002 to 10 euros now.

Also, a Big Mac at McDonald's cost 4,900 lira in 2002, or 2.53 euros, and now costs 3.50 euros.

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