MPs Reject Revenue Proposals in Committee Report
Summary of the French budget vote (as of October 16, 2025 – based on the provided text)
This article details the outcomes of a recent vote on the French budget.Here’s a breakdown of key points:
Key Defeats for the Government:
* Wealth Tax: The government failed to reinstate a wealth tax on professional assets. The proposal (the “Zucman tax“) was rejected by the RN (National Rally) deputies after previously being allowed to pass due to thier abstention.
* Retiree Tax Break: Deputies rejected the removal of a 10% tax reduction for retirees, costing an estimated €1.2 billion.
* Income Tax Scale Freeze: The freezing of the income tax scale was marginally revised, excluding the first tranche of tax, costing an estimated €700,000.
Wins for the Government/Majority:
* Tax on Tech Giants (“Gafam” tax): A tax on the profits of American tech giants (Google, Apple, Facebook, Amazon, Microsoft) was approved, supported by the Renaissance party.
* “Tonnage Surcharge”: Perpetuation of a surcharge primarily targeting shipowner CMA-CGM.
* Exceptional Contribution on Super-Dividends: Approved.
* elimination of Taxation on Daily Allowances for long-Term Illness: Supported by a broad coalition including LR and RN.
* Reductions in Tax expenditure: An amendment modifying the calculation of the research tax credit (CIR) was approved, expected to generate €960 million.
* Various Measures: Approval of measures like a greening of maritime fuels, increased VAT on luxury products (to 33%), and regulation of electricity prices (via an LFI amendment).
Overall:
The budget vote resulted in a mixed outcome. While the government secured some key revenue streams and supported certain measures,it faced significant defeats on proposals related to wealth taxation and existing tax benefits,potentially impacting the public deficit. The RN played a key role in blocking the wealth tax.