Agnès Pannier-Runacher had affirmed that the government was going to propose an increase in gas taxation via an amendment to the finance bill. A proposal swept aside by Laurent Saint-Martin who assures that this is not planned.
The finance bill has been presented and the Barnier government wants to increase state revenue, in particular by increasing taxes on certain items, such as electricity. Friday, Agnès Pannier-Runacher, Minister of Ecological Transition, Energy, Climate and Risk Prevention, affirmed that an amendment could be added to the finance bill, providing for an increase in gas taxation. Concretely, this would mean that the gas tax would increase, thus helping to increase state revenue, but therefore increasing the gas bill. The minister did not give details on the amount of the increase in this tax.
But Laurent Saint-Martin, Minister responsible for the Budget and Public Accounts, does not validate this proposal. Asked about this on TF1Saturday November 12, he corrected the situation: Agnès Pannier-Runacher “said that there would perhaps be amendments on the increase in gas taxation”, before ensuring that the finance bill “will not does not contain an increase in gas taxation. Note that amendments make it possible to add proposals to a bill under study.
What are the consequences for French bills?
The Prime Minister was very clear in tackling the 2025 budget: we will have to make savings and increase state revenue. To increase revenues, the French should, if the budget is passed, be made to contribute through taxes. According to Laurent Saint-Martin, the gas tax should not increase. In addition, the International Energy Agency (IEA) assures that the price of gas is expected to fall in 2025 in Europe, due to the increase in supplies from the United States and Qatar. As a reminder, the price of gas increased sharply in 2021 and 2022 in Europe, affected by the energy crisis which followed Russia’s invasion of Ukraine in February 2022. If there is no increase in gas taxation is finally observed, gas bills should therefore be lower in 2025.
Concerning the price of electricity, Laurent Saint-Martin makes a clarification. There will indeed be an increase in taxation in this area, that is to say an increase in taxes, but the bill will still fall: “The electricity bill of our fellow citizens who are at the regulated rate will fall up to 9%, approximately, from February 1.” This could be possible thanks to the reduction in the cost of electricity which will absorb the increase in the tax. This means the end of the tariff shield, put in place during the energy crisis.