Senate Approves Tax Increases in 2025 Budget
In a decisive move, the French Senate voted on several tax increases as part of the 2025 budget discussions held on November 27 and 28. Among the approved measures are increases in taxes on bottled water, airline tickets, and gas boilers, aimed at generating additional revenue for the government. The decision comes after senators previously opposed a significant hike in electricity taxes, which was projected to yield 1.2 billion euros.
Increased VAT on Bottled Water
To encourage the use of tap water and reduce plastic waste, the Senate voted to raise the VAT on bottled water from 5.5% to 20%. This measure is expected to generate between 150 and 300 million euros annually. However, overseas departments facing water distribution issues will be exempt from this increase. Public Accounts Minister Laurent Saint-Martin criticized the move, stating that VAT is not an effective tool for incentivizing behavior changes. The decision also follows concerns raised by the Nestlé Waters scandal, prompting a Senate inquiry into the practices of the bottled water industry.
Changes to Airline Ticket Taxes
The Senate also approved an increase in the
