This is yet another measure supposedly aimed at helping the environment. But many French people have already decided that it is yet another stealth tax (yes, they have these in France too).

The idea

Bonus Malus was first launched on automobiles at the start of 2008. The idea was that those who bought small fuel-efficient cars would receive a payment by way of encouragement, paid for by the taxes from those who buy ‘gas-guzzlers'. It was to be a self-funding scheme, not costing the French government a penny.

In one respect it has been successful. According to the figures of the French Auto Manufacturers Association, sales of small fuel-efficient cars have risen by 15%. At the same time sales of large vehicles have dropped by 27%.

Government revenues have been slashed however, with insufficient ‘Malus' fines to finance the ‘Bonus' payments made. Government ministers are now talking of changing the car tax scheme to a ‘Malus-Malus' of all taxes and no pay-back.

Meanwhile they have decided that this is too good a system to be limited to cars; Ministers would like to see it extended to other sectors, and they have also suggested there could be a common approach in other European countries, including the UK. So the French government has announced that Bonus Malus will be introduced to consumer goods, starting with cooling domestic appliances and lights. Proposals from the French Ministry of the Environment would have the system introduced for these products in 2009. A campaign has already started under the slogan "faisons vite, ca chauffe" (hurry up, it's getting warmer). Other countries are watching with interest.

In Amdea our concern lies with cooling products. The plan is to tax or fine manufacturers for each sale of a less efficient product, and to reward consumers who chose to buy a more efficient one (see table below).

 As can be seen, the bonus payment to the consumer can be as high as 80 euros, while the tax could be as much as 50 euros. Some products in the middle range escape benefit or fine. Note that benefits and fines are not only calculated on the basis of the well-known energy label (A++ to C) but also on size/capacity. So large fridges are taxed, even though they may be bought by a large family - and surely that must be better than buying two small fridges!

The set up

The French government intends to use the public agency which taxes cars (CNASEA) to tax domestic appliance manufacturers and to reward consumers - though it is expected that retailers should be able to enter into a contract with CNASEA to pay the bonus to consumers directly in the shops.

The equivalent in the UK would be to allow the DVLA to run a system of taxes and benefits in retail outlets. Not surprisingly, producers, retailers and those concerned with civil liberties across Europe are concerned.

The European Association of Domestic Appliances CECED is sufficiently concerned to set up a Task Force to look into this - of which I am a member. We are compiling information from all over Europe which will allow us to produce a Position Paper to be presented to the French government and the European Commission.

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