Finance bill: the government will propose to increase taxes on gas

Finance bill: the government will propose to increase taxes on gas
Finance bill: the government will propose to increase taxes on gas

The government will propose “an increase in taxes on gas”, through an amendment to the finance bill, Minister of Ecological Transition and Energy Agnès Pannier-Runacher said on Friday.

Without providing further details, the minister thus gave clarification during a press briefing to the measure of taxation of “fossil fuels” mentioned the day before in the press kit for the draft budget.

“The challenge is also to work on brown niches through the increase in the automobile penalty, through the elimination of the reduced VAT rate of 5.5% on the installation of fossil fuel boilers and finally through government amendment, through an increase in taxes on plane tickets and gas,” she declared.

“It is important to provide consistent price signals between carbon solutions and carbon-free solutions,” she explained regarding these measures.

“It is especially important to avoid public policies and public money making carbon solutions less expensive than decarbonized solutions,” added Agnès Pannier-Runacher, with particular reference to the increase in electricity taxation. , essentially decarbonized in due to the importance of nuclear power.

In its finance bill presented on Thursday, the government plans to increase electricity taxation to a level which will “guarantee the consumer a 9% reduction in the regulated sales price in 2025 from February 1”.

The government is counting on the drop in electricity costs on the markets to absorb the increase in the electricity tax, which will mark the exit from the tariff shield put in place during the energy crisis from the end of 2021 to contain bills of the French.

This increase in taxation on electricity raises concerns among those involved in the energy transition who see it as a negative signal for the acceleration of the electrification of uses (electric cars, electric heating), going against France’s objectives. to get away from fossil fuels.

The government’s plan to increase taxes on gas also appears implicitly in the press kit for the finance bill under the heading “measures by amendment (airline tickets, fossil fuels)”. Together, these measures should bring 1.5 billion euros to the state budget, including 1 billion for the increase in taxes on plane tickets.

The previous government already doubled the excise on gas on January 1, 2024, one of the taxes paid by gas suppliers and passed on to consumers, which at the time materialized the end of the price shield on gas.

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