PLF 2025: MPs reject increase in electricity tax

The deputies deleted an article providing for the possibility of giving the government the possibility of taxing electricity at a level higher than the period before the energy crisis, by adopting two deletion amendments: one presented by the National Rally, the second presented and then withdrawn by the Republican Right, before being taken up by the president of the Finance Committee Éric Coquerel (LFI).

The tax project, which the government hopes will raise 3 billion euros, will however be carefully examined in the chamber, where the deputies will start from the government's initial copy.

Bercy, which wants to put an end to the tariff shield put in place during the inflationary crisis, ultimately promises a 9% reduction in the tariff "for households with the regulated sales tariff (TRV) or contracts indexed to this tariff", due to the reduction in the cost of energy.

Earlier in the afternoon, MPs approved the removal of an article that provides for a reform of the preferential tariff for access to nuclear electricity, known as Arenh, which will disappear at the end of 2025.

Macronist MP David Amiel also had an amendment adopted to harmonize VAT on photovoltaic installations, with the stated aim of promoting the growth of the sector. As for socialist Philippe Brun, he had a 0,3% tax adopted on speculative transactions involving the purchase and resale of electricity.

"Ecological cost"

The deputies also adopted a strengthened version of the "Crim", a contribution on the marginal rents of electricity producers who allegedly made exceptional profits thanks to the surge in energy prices following the war in Ukraine. It was initially supposed to bring in 12,3 billion euros, but the yield was very disappointing.

The general rapporteur Charles de Courson (Liot) however considered that the measure introduced by LFI would "bring nothing" because "prices have fallen" since then, reducing the potential base of this tax.

A little later in the evening, the deputies deleted an article providing for increasing the automobile penalty for petrol and diesel vehicles, at the initiative of the right, and with the support of the RN. The general budget rapporteur Charles de Courson (Liot) was rather in favour of this deletion, denouncing an "excessive" reform that could affect up to "80%" of vehicles.

Also removed is the article providing for the exclusion of gas boilers from the scope of the VAT reduced to 5,5% or 10%, to tax them at the full rate of 20%, via amendments from the Macronist camp, RN and LR.

The deputies, however, adopted an amendment creating a "kilometer tax to integrate the ecological cost into imported products", on the proposal of the left and with the support of the RN.

They wanted to subject furnished tourist accommodation rentals to VAT, create a "circular VAT" for the repair sector, and introduce a 5,5% VAT for the "first kilowatts, necessary for life and dignity", as for new constructions of social housing and work carried out in existing social housing.

An amendment introduced 0% VAT in overseas territories for basic necessities included in the quality-price shield (BQP) system.

In the morning, parliamentarians approved an amendment strengthening the "exit tax", a tax created in 2011 to curb the tax exile of taxpayers, but which had been considerably relaxed in 2018 by the Macronist majority. They also approved the creation of a new tax bracket for inheritances above 3,6 million euros, taxed at 49%, compared to 45% maximum rate today.