France: The Government Confirms No Increase in Gas Taxes

The French government assures that no increase in gas taxes will be implemented, thereby contradicting previous statements by the Minister of Ecological Transition.

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The French government has reaffirmed its commitment not to increase gas taxes, following contradictory statements from members of its team. Maud Bregeon, government spokesperson, clearly stated that no new taxes will be applied, thereby ending the speculations raised by statements from the Minister of Ecological Transition, Agnès Pannier-Runacher.

This clarification comes after Ms. Pannier-Runacher mentioned the possibility of increasing gas taxes in an amendment to the finance bill. She had emphasized the need to provide coherent price signals between carbon-based and decarbonized solutions, mentioning various fiscal levers.

Contradictory Statements within the Government

Maud Bregeon spoke during an interview on BFMTV to contest the minister’s remarks, asserting that the gas tax had already doubled at the beginning of the previous year and that there would be no further increase. She also mentioned the arbitration by Prime Minister Michel Barnier on this crucial issue.

On the other hand, Agnès Pannier-Runacher had stated during a press conference that the government was considering increasing taxation on gas, as well as on other sectors such as airline tickets. These proposals were part of the measures considered through amendments within the finance bill.

Impact on Households and Businesses

The gas tax had been doubled last year as part of the removal of the tariff shield implemented in 2021 to counter the energy crisis. This measure aimed to limit the increase in consumers’ bills but was criticized for its impact on households’ purchasing power and businesses’ competitiveness.

Maud Bregeon recalled that the government’s budget project plans a controlled increase in electricity bills while ensuring a 9% reduction for 76% of households under regulated tariffs. This approach aims to balance the needs for energy transition with consumer protection.

Reactions from Political and Economic Actors

The minister’s statements have elicited mixed reactions within the government. The Minister of the Budget, Laurent Saint-Martin, expressed his disagreement with the proposal to increase gas taxes, highlighting the importance of maintaining fiscal stability to support economic recovery.

Furthermore, companies in the energy sector welcomed the announcement of no tax increases, arguing that it would allow for better financial planning and continuity of investments in energy infrastructure.

Future Perspectives and Complementary Measures

The government continues its efforts to promote sustainable energy solutions without increasing taxation on households and businesses. Among the ongoing initiatives are the increase of the automobile penalty and the removal of the reduced VAT rate on fossil energy boiler installations.

These measures are part of a broader energy transition strategy aimed at reducing the carbon footprint while supporting the national economy. The debate remains open regarding the best approaches to achieve these goals without compromising competitiveness and citizens’ well-being.

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