MEPs voted against a round of tax increases. This could have repercussions on the French wallets.
Drama at the National Assembly! During a first vote on the 2025 budget, the majority of deputies voted against a round of tax increases, initially adopted by parliamentarians. This means that many various tax increases, particularly on the richest and the most successful businesses, are falling through, at least initially. On the other hand, this means above all that the increase in the electricity tax, which will affect all French people, is indeed about to come into force.
As a majority of deputies voted against the “revenue” section of the finance bill for 2025, all the adjustments voted on fall by the wayside. Namely, in particular, a new tax on the wealth of billionaires, an additional tax on dividends from companies with a turnover of 1 billion euros, a universal tax on multinationals, a tax on noisy two-wheelers or again the return of a tax on businesses (CVAE). No more extra recipes.
The text will now be sent to the Senate, but it will be the initial version written by the government, the one which plans to double the TICFE, this tax paid by all households and businesses, on their electricity bills. It is this text which also provides for an exceptional contribution from the very rich so that 20% of their income is subject to tax, to increase VAT on gas boilers or even the penalty on polluting vehicles.
Latest updates
17:52 – Who voted against increasing taxes for the wealthiest?
With this rejection of the text, a whole series of tax increases on the wealthiest, particularly businesses, is falling through. The RN, the Macronists, as well as LR all voted against. Only the left voted in favor of the revised text, which is now obsolete.
17:41 – What does this vote by MPs mean for my portfolio?
At this stage, this vote by deputies means, mainly, that the increase in the electricity tax, paid by all French people, is retained in the bill, as is the increase in the ecological penalty on vehicles or even the increase in VAT on gas boilers.
17:38 – Tax increases canceled by MPs
While various tax increases had initially been adopted by the deputies and certain increases had been canceled, everything just fell through on November 12. 362 deputies voted against the “revenue” part of the finance bill for 2025, therefore canceling all the work carried out by parliamentarians so far.