France: the Senate confirms the continuation of reduced taxation on Superethanol-E85

Parliament approved the removal of a proposed tax increase on Superethanol-E85, ensuring a continued favourable tax regime for motorists and the agricultural sector until 2026.

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The Senate voted in favour of removing the planned tax increase on Superethanol-E85 as part of the 2026 finance bill, confirming the decision previously adopted in first reading by the National Assembly. This vote, held on November 30, aligns with the Government’s position, which stated it would not alter the specific tax regime applied to this fuel.

This decision reinforces the position of the French bioethanol sector, which had opposed any increase in the domestic consumption tax on energy products (TICPE) applied to Superethanol-E85. According to industry representatives, the proposed measure had been initiated without prior consultation and failed to consider economic, agricultural and industrial realities. The National Assembly had rejected the tax hike by a 77% majority on November 3, with cross-party support.

Fiscal stability viewed as a strategic lever for the sector

Maintaining a reduced tax framework is seen as strategic by the bioethanol industry, which includes agricultural producers, processing companies and certified conversion kit manufacturers. The parliamentary decision is considered a sign of continuity, enabling operators to plan investment within a stable context.

For motorists, this means they can continue using Superethanol-E85 at lower cost, with the fuel available at over 4,000 service stations—representing 42% of the national network. Compatible vehicles, whether factory-built or retrofitted with certified kits, offer a fuel cost reduction of approximately 40%, according to data shared by industry sources.

A medium-term budgetary and industrial issue

The removal of the tax increase comes amid ongoing annual budget discussions where tax treatments of alternative fuels are regularly reviewed. The bioethanol sector is now calling for this fiscal orientation to be secured over the long term, citing the need for visibility to sustain motorist confidence and the industrial structuring of the sector.

Several companies specialising in petrol vehicle conversion continue to supply certified kits enabling the use of E85. Fiscal stability is viewed by these firms as essential for continued commercial development and for maintaining production capacity.

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