Senate Budget Committee Approves Tax Bill
The Senate Budget Committee has given the green light to the tax decree, allowing it to progress to the Chamber, where it is expected to arrive tomorrow. This approval marks a significant step in the legislative process, as the government aims to implement new tax measures amid ongoing economic challenges.
Opposition to Electricity Tax Increase
In a notable development, the Senate has firmly opposed raising electricity taxes beyond pre-crisis levels. This decision, made with overwhelming bipartisan support, is seen as a setback for the government led by Prime Minister Michel Barnier. The proposed increase was expected to generate over three billion euros in revenue, but senators opted instead to raise the gas tax, anticipating a gain of approximately 1.2 billion euros. Critics, including socialist Thierry Cozic, labeled the government's approach as socially unjust, arguing that it unfairly burdens electricity consumers.
Government's Stance on Tax Rebalancing
The government has expressed its disapproval of the Senate's decision to increase the gas tax, advocating instead for an increase in the electricity tax while maintaining a reduction in electricity bills. Budget Minister Laurent Saint-Martin emphasized the government's commitment to reducing electricity costs for 80% of the population by 9% starting February 1. This reduction is facilitated by a decline in wholesale electricity prices, which the government believes will allow for a tax increase without raising consumer bills significantly. However, the opposition remains strong, with various parties, including the National Rally, opposing any tax measures that would affect electricity pricing.
