France has announced a new pricing system to help restaurants and food trucks cope with the growing popularity of burgers, fries and other fast food options.
The government wants to raise the price of all foodstuffs in the country by 10 per cent by 2020, but a new tax on food products could lead to prices dropping.
The food tax will apply to both fresh and processed foods.
The French Ministry of Finance said the new system will be used to tax products ranging from fresh produce to meat and vegetables, and is expected to be implemented on January 1.
The system will include a “frozen” tax, which will only be charged once a certain amount of goods has been purchased, and a “tax on processed food”, which will be charged whenever products have been frozen, or when products are heated.
The price of foodstuff in France will be adjusted to reflect changes in the market.
The government has previously announced a 5 per cent tax on the sale of food, but this tax will be raised to 10 per percent.
The tax on processed foods will be introduced on January 15.
The price of processed foods in France is currently 10 euros ($11.50), which will rise to 20 euros by 2020.
French President Emmanuel Macron said the tax will encourage French companies to produce more food, while creating a “global climate” to increase French consumption.
The new system is expected at the Paris market, where France’s biggest restaurants and retailers are already struggling to compete with rivals like Britain, the United States and Italy.
French Prime Minister Edouard Philippe announced on Friday that the country will launch a “new tax” for foodstamp in 2019, adding that the levy will be increased by 10 percent per year.
France will introduce the tax on July 1, 2020, to encourage food companies to innovate and compete with their foreign competitors.