Green party members in the lower house National Assembly of France failed to introduce an additional levy on palm oil, just-food reported on 28 October.
Their amendment to the 2017 budget bill would have applied an extra tax of €300 (US$328)/tonne in 2017, rising progressively to €900/tonne in 2020.
These levels were first passed by the French Senate on 21 January, but was significantly lowered by the National Assembly on 17 March to €30/tonne for 2017, rising to €90 in 2020 (see News, OFI May 2016).
The additional tax was scrapped completely by the Senate on 12 May (see News, OFI June 2016).
However, the government said it would propose by February a new scheme to harmonise taxes on vegetable oils, including an exemption for those that were sustainably produced, the just-food report said.
Malaysia and Indonesia – the world’s largest palm oil producers – have both condemned the taxes with Malaysian Palm Oil Council calling it a clear violation of WTO and EU trade rules.