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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Illustration of French deputies in the Assembly rejecting the 2026 budget proposal in a commission meeting, with documents and vote displays emphasizing the rejection and additional spending.
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Assembly rejects 2026 budget expenses in commission

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Deputies in the Finance Commission overwhelmingly rejected Wednesday the state budget expenses for 2026, heavily rewritten with 27 billion euros in additional spending. This indicative vote highlights the lack of majority for the government text. Meanwhile, the Assembly approved a 2-euro tax on small extra-European parcels.

Colombia's Health Ministry backs the VAT increase on alcohol and tobacco from 5% to 19%, arguing it will protect public health by curbing consumption and related deaths. However, up to 20 governors oppose it, claiming the measure violates territorial autonomy and cuts revenues for health and education. The government has called a meeting for January 19, 2026, in Bogotá to clarify Decree 1474 of 2025.

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Debates on France's 2026 budget project promise to be fierce in the National Assembly, with over 1,700 amendments filed for the revenues section. Budget rapporteur Philippe Juvin sharply criticizes the planned tax increases and calls for cuts in public spending. The finance committee review begins on Monday, October 20, in a tight schedule.

After a weekend suspension of debates, National Assembly deputies resumed discussions on November 17 on the revenues section of the 2026 finance bill, with over 1,500 amendments to review by November 23. In the evening, they tackle the end-of-management bill adjusting 2025 finances, featuring debates on the VAT revenue shortfall. Meanwhile, the Senate reviews the social security budget and removes the pension reform suspension.

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The French government, facing a parliamentary deadlock on the 2026 budget, must decide on Monday between article 49.3 and an unprecedented budgetary ordinance. It is renewing the surtax on large companies' profits at 8 billion euros, while renouncing a cut to the CVAE. This aims to secure an agreement with socialists to avoid censure.

The French National Assembly suspended debates on the first part of the 2026 finance bill on November 3, with over 2,300 amendments still to examine. Discussions will resume on November 12, after the social security budget review, in a race against time to meet the November 23 deadline. This delay fuels fears of the government resorting to ordinances.

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A poll reveals that 52% of French people anticipate the failure of the 2026 finance bill and want a censure motion against the Lecornu government. The finance commission rejected the first part of the budget, and debates in the National Assembly begin this Friday without using article 49.3. Oppositions, like the RN and socialists, threaten to block the bill with their counter-proposals.

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