Controversy in La Réunion over alcohol taxation in 2026 budget

In La Réunion, an amendment to the 2026 finance bill has sparked controversy over a local surtax on spirits to combat alcoholism. Regional council president Huguette Bello opposes the measure, while public health experts defend it as a critical issue.

Debates on the 2026 state budget have ignited tensions in La Réunion, where a proposal to increase taxes on local alcohol, particularly rum, has divided opinions. Senator Stéphane Fouassin, from the diverse right and a doctor by profession, introduced an amendment to establish a Réunion-specific surtax on all strong alcohols. This tax would be higher for imported spirits, aimed at funding prevention campaigns and curbing alcohol consumption on the island.

"A public health issue," the parliamentarian emphasizes, highlighting the devastating effects of alcoholism locally. David Mété, head of the addiction service at the CHU de Saint-Denis and president of the regional addiction federation, points out that La Réunion tops the shameful rankings among French regions for alcohol-related deaths, with around 450 fatalities per year according to the regional health observatory. The island also leads in hospitalizations for alcohol use disorders and has a high prevalence of fetal alcohol syndrome.

Alcohol is involved in 80% of intrafamilial violence and 60% of fatal road accidents. In response, Huguette Bello, president of the regional council, urged the government to reject the amendment, arguing it would harm the local economy without addressing root causes. Although the amendment was not passed in the National Assembly, it has reignited discussions on public health policies in overseas territories.

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