Elected officials in the upper house adopted three measures during the night from Wednesday to Thursday aimed at bringing in new revenue next year.
Three tax hikes in one night. The senators voted on several amendments on Wednesday 27 and Thursday 28 November as part of the debates on the 2025 budget. If they had opposed Tuesday evening to a flagship provision of the 2025 budget authorizing the executive to increase taxation of electricity to tax it at a level higher than the pre-energy crisis period, for a gain estimated at 1.2 billion euros, the elected representatives of the upper house have validated increased taxation bottled water, gas boilers or even plane tickets. Le Figaro takes stock.
Bottled water
To encourage consumers to favor tap water, the Senate voted to increase VAT on bottled water, from 5.5% to 20%. The overseas departments, some of which are facing a chronic water distribution crisis, would, however, be spared. Senators estimated that the measure could bring in between 150 and 300 million euros per year. The Minister of Public Accounts Laurent Saint-Martin opposed it, arguing that VAT was not “not an incentive tax tool”.
In addition to the ecological issue of reducing the production of plastic and glass bottles to store this water, the senators put forward the “concerns raised by the Nestlé Waters scandal”. The subsidiary of the Swiss agri-food giant admitted in January to having used prohibited disinfection systems to maintain the “food safety” of its mineral waters. Revelations, relayed by the press, which shined the spotlight on the practices of manufacturers in the sector, leading in particular the Senate to launch a commission of inquiry on the subject at the beginning of autumn, aimed in particular at investigating the use prohibited filtration processes.
Airline tickets
Almost unanimously, the senators also increased the “solidarity tax” on plane tickets. It would be raised from next year, and not just for a single year as the deputies had decided. On the other hand, the impact on state coffers could be less than expected – the government expected an additional billion euros in 20225.
The senators have significantly reduced the scale of this tax, the minimum amount of which would thus increase from 2.63 to 5.30 euros for an economy class ticket to France or Europe, instead of the 9.50 euros envisaged by the government. Prices for first class and for business aviation have also been revised sharply.
The Senate also voted for exemptions for flights from and to overseas departments or Corsica, as well as for so-called lines “territorial planning” which serve, among other places, Limoges, Castres or Brive-la-Gaillarde. However, measures “contrary to European law”warned Budget Minister Laurent Saint-Martin, stressing that he “will not be possible” to establish “differentiated taxes depending on destinations”.
Gas boilers
Senators also voted to increase the VAT rate for gas boilers. Until now, they benefit from a reduced VAT rate of 5.5% or 10%. They should now be taxed at the full rate of 20%. On this point, the senators followed the government's project. The measure should bring in 200 million euros in the 2025 budget.
