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France Eyes Increased Tax On Motorway Companies

by Ulrika Lomas, Tax-News.com, Brussels

10 December 2012


French Transport Minister Frédéric Cuvillier has recently announced plans to increase by EUR200m (USD259m) the tax imposed on motorway companies in France, "la redevance domaniale", a levy paid by companies in exchange for the right to provide public services.

The product of the tax rise is expected to flow to the French agency responsible for funding transport infrastructure projects in France (AFIFT).

The tax increase may be implemented as early as January 2013 within the framework of a decree. The government is determined to ensure, however, that the tax rise will not be passed on to motorway users in the form of tariff (péage) increases.

The government’s plans to raise the tax on motorway companies may in part be linked to the planned fresh rise in motorway tariffs next year. The French transport ministry recently confirmed that tariffs are to rise again in France from February 1 by between 1.18% and 2.29%, or on average by 1.9%.

Motorway toll tariffs increased by on average 2.5% this year and 2.2% last year.

The government wants to ensure that the redevance domaniale is adjusted to take into account the economic reality of profits realized by motorway companies, currently estimated at 25% of turnover.

Objecting to the government’s plans, motorway companies are said to be currently in negotiations with the transport ministry.

TAGS: tax | tariffs | France

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