As part of the preparation of the finance bill for 2025, the Minister of Ecological Transition and Energy, Agnès Pannier-Runacher, announced last Friday a proposal to increase taxation on gas. This initiative, which is part of a broader energy taxation strategy, could generate around 1.5 billion euros in “environmental” revenue, also including the tax on plane tickets.
In search of new resources for the 2025 budget, the government is banking on energy taxation. During a press point, Agnès Pannier-Runacher confirmed her intention to submit an amendment aimed at increasing taxation on gas, a measure which had already been mentioned in the context of the taxation of “fossil fuels”.
This increase in taxation is part of a broader objective of increasing green taxation by 1.5 billion euros, of which one billion would come from the increase in the tax on plane tickets. In addition, the increase in VAT on gas boilers to 20% is planned, contributing to a collection estimated at 500 million euros.
The minister underlined the importance of creating clear price signals to encourage favoring low-carbon solutions over carbon-based energies. She insisted on the fact that it is essential to prevent public policies from favoring polluting solutions by making them less expensive than ecological alternatives.
Furthermore, the finance bill also provides for an increase in taxation on electricity, with the aim of allowing a 9% reduction in the regulated sales tariff from February 2025. This increase in the tax on electricity electricity is accompanied by the end of the tariff shield introduced during the energy crisis, which aimed to limit consumer bills.
However, this increase in electricity taxation raises concerns among those involved in the energy transition. They fear that it will send an unfavorable signal to the acceleration of the electrification of uses, such as electric vehicles and electric heating, which would contradict France’s objectives of reducing its dependence on fossil fuels.
