Ecological Penalty 2025: The Assembly Says No to Stricter Taxation

The examination of the 2025 budget bill in France saw the rejection, on Saturday, October 26, of an even more severe ecological penalty.

In the current political game in France, with a government lacking a majority in the Assembly, the votes make no sense. Thus, after campaigning for months for a retirement age of 62, the LFI deputies are doing everything they can to avoid voting for this parliamentary niche currently supported by RN elected officials from the National Rally. It’s demagoguery from both extremes that harms citizens.

On Saturday, October 26, 2024, during the examination in the National Assembly of the 2025 Budget bill, the RN, LR, Ciotti supporters, as well as some socialists and communists voted against the increase of the ecological penalty on thermal cars. With 128 votes against 90 from France Insoumise, environmentalists, and Macronists, the retention of the 2024 scale was confirmed.

However, one should not cry victory—or defeat, depending on your perspective—because there is a high probability that the Barnier Government will force through its 2025 budget, which is set to endorse up to 60 billion euros in savings and new tax revenues. To do this, it will use Article 49.3 of the Constitution.

What would the “Barnier” 2025 penalty be?

• reduction of the ecological bonus envelope from 1.5 to 1 billion euros for electric cars
• decrease of the ecological bonus for electric cars from 4000 to 3000 euros
• reduction of the eligibility ceiling for electric cars to 40,000 euros
• introduction of an income ceiling to be eligible for the bonus. Exclusion of high earners
• lowering the ecological penalty trigger threshold from 118 to 113 grams/km (and 106 g in 2026 and 99 g in 2027)
• increasing the penalty ceiling from 60,000 to 70,000 euros in 2025, then by 10,000 euros in 2026 and 2027, up to 90,000 euros.
• lowering the weight penalty trigger threshold from 1600 to 1500 kg for thermal vehicles. A 200 kg reduction for plug-in hybrids with a range exceeding 50 km in 100% electric mode.

The cumulative effect of all these measures should impose penalties on up to 80% of new thermal vehicles by 2027, compared to 40% in 2024. That’s double the volume but not the tax. Indeed, revenues from the ecological penalty would rise from 630 million to 2.21 billion euros in 2025, then to 3.3 billion in 2026 and 4.45 billion in 2027.

Billions that the State will not be able to let escape and which will likely impose, on the altar of ecological transition, by force. Response on Tuesday, October 29, 2024, the deadline for voting on the 2025 Budget…

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