Water in the gas. For Laurent Saint-Martin, it’s no. Guest of the 1 p.m. news on TF 1 this Saturday, the Budget Minister said he was “not in favor” of an increase in gas taxation, although advanced the day before by Agnès Pannier-Runacher, his colleague in charge of the Ecological Transition .
Friday, the minister declared that “the challenge is to work on brown niches through the increase in the automobile penalty, through the elimination of the reduced VAT rate of 5.5% on the installation of boilers fossil fuels and finally by government amendment, through an increase in taxation on plane tickets and gas. “It is important to provide consistent price signals between carbon solutions and decarbonized solutions,” she explained regarding these measures, with particular reference to the increase in taxation of electricity, which is essentially decarbonized in France in because of the importance of nuclear power.
Agnès Pannier-Runacher “said that there would perhaps be amendments on the increase in gas taxation”, said Laurent Saint-Martin this Saturday. He observed that the finance bill presented this week “does not contain an increase in taxes on gas”.
The previous government already doubled the excise on gas on January 1, 2024, one of the taxes paid by gas suppliers and passed on to consumers, which at the time materialized the end of the price shield on gas.
In its finance bill presented on Thursday, the government plans to increase electricity taxation to a level which will “guarantee the consumer a 9% reduction in the regulated sales price in 2025 from February 1”. It is counting on the drop in electricity costs on the markets to absorb the increase in the electricity tax, which will mark the exit from the tariff shield put in place during the energy crisis from the end of 2021 to contain the bills of French.
The tax on electricity “is increasing because it had fallen to zero during the inflation crisis,” observed Laurent Saint-Martin on Saturday. “The State has protected our fellow citizens in the face of surges in energy prices, (…) today with inflation below 2%, for our public finances, we must remove this shield if there is no longer inflation”.
The government wants to increase VAT on the installation of gas boilers to 20%. This measure was considered last year to encourage the French to reduce their use of fossil fuels, but was abandoned following the industrialists’ reaction.
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