Following weeks of intense speculation and controversy, French Prime Minister François Fillon has finally unveiled details of the new carbon tax, to be introduced in France in 2010.
Applied progressively, a levy of EUR14 per tonne of carbon dioxide emitted will initially be imposed, well below the EUR32 per tonne figure originally advocated by the French government’s specialist advisory panel, led by former Prime Minister Michel Rocard.
An independent committee will then be established in order to assess the effects of the new policy, and to propose any necessary changes, Fillon added.
Insisting that the carbon tax or ‘contribution climat-énergie’ will not result in a rise in existing levies, or represent a new tax for the country, Prime Minister Fillon has instead described the carbon tax as a transfer of taxation.
For businesses, for example, the introduction of the carbon tax will be offset by a reduction in local business tax or ‘taxe professionnelle’. French President Nicolas Sarkozy had already announced the abolition of part of this tax, the tax on productive investments, earlier in the year.
Households will also be compensated, either by way of a reduction in income tax, or by a reduction in social contributions.Eager to emphasise that the carbon tax will not be applied uniformly throughout France, François Fillon has revealed that financial measures designed to accompany the new tax are currently being evaluated by the government, in order to support those most disadvantaged, and those living in rural areas, although the Prime Minister did not specifically refer to the issuing of a ‘green cheque’ or ‘chèque vert’.
Championed by President Sarkozy, the carbon tax will tax all sources of carbon dioxide emissions, including the use of fossil fuels, such as petrol, gas, and coal. The tax will not, however, be levied on electricity, it has been confirmed.
Targeting priority sectors such as transport, housing and agriculture, the tax is designed to reduce consumption of fossil fuels, and to encourage consumers to opt for more energy-efficient and environmentally friendly products.
The carbon tax plans will now be debated in Parliament.
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