the disappearance of fossil fuels, a real shortfall for the State

2023-12-09 17:43:30

Barthélemy Philippe, edited by Philippe Folgado // Photo credit: MATHIEU THOMASSET / HANS LUCAS / HANS LUCAS VIA AFP
6:43 p.m., December 9, 2023modified to

6:50 p.m., December 9, 2023

Getting out of fossil fuels will cost a lot of investment, but we talk less regarding it, it will cost the State in lost revenue. Tax revenues from fuels and gas will fall significantly before theoretically disappearing completely in 2050. A report has just been submitted to Bruno Le Maire makes this observation.

This is one of the objectives of the COP28 which is being held in Dubai, to find an agreement on fossil fuels. Reducing the use of these energies before completely abandoning them will cost a lot of investment, but it will represent a real shortfall for the state coffers. This is a crucial windfall from which our public finances will be deprived.

Electricity taxes, far from compensating the shortfall for the State

Taxes on fuel and gas brought in 33 billion euros in 2019, the reference year of the report which was submitted to Bruno Le Maire, or 10% of total state revenue. According to the report, budgetary revenues from fossil taxes will have already decreased by 13 billion euros in less than seven years, in 2030. One in five cars will then be electric and therefore more affected by these taxes.

And the latter will disappear in 2050 at the same time as the vast majority of thermal cars. So yes, the transition of the vehicle fleet will boost the yield on electricity taxes. But with unchanged taxation, they will be far, very far even, from compensating the shortfall for the State. Those close to the Minister of the Economy explain that the report, the first of its kind, should make it possible to find alternative paths. But the work has not yet started and at this stage, there are no leads, we recognize on the Bercy side.

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