On October 19, the National Assembly’s Finance Committee rejected the ‘revenue’ section of the Finance Bill, with left-wing deputies supporting the modified text while others opposed it due to a proposed €60 billion tax increase. Key articles were deleted, and amendments introduced, leading to significant changes, including an overhaul of the ecological tax package. Budget Minister Laurent Saint-Martin criticized the tax hikes, labeling them as ‘a fiscal bludgeoning,’ while opposition voices condemned the decision. The government’s draft will be debated on Monday.
On Saturday, October 19, the National Assembly’s Finance Committee took a significant step by rejecting the ‘revenue’ section of the Finance Bill. This decision came after the government’s original proposal was extensively modified, with the vote concluding at 29 in favor and 22 against.
The revised text garnered the support of left-wing deputies from the New Popular Front, while all other factions were opposed. Committee chairman Eric Coquerel highlighted a contentious aspect, noting that the proposed tax contributions would see a staggering €60 billion increase.
The government’s draft will be up for public examination starting Monday at 9:30 AM. #PLF2025 was trending as the Assembly’s Finance Committee debated the adjustments, revealing a clear division among the deputies.
The bill, heavily scrutinized by the Finance Committee, emerged almost unrecognizable after its review: essential articles were removed, multi-billion euro amendments accepted, and numerous new taxes or exemptions introduced. In fact, significant portions of the government’s budget were outright rejected.
A critical component of the ecological tax reforms faced a thorough overhaul, resulting in the elimination of planned tax increases on electricity, gas boilers, and combustion vehicles. Additionally, proposals affecting local authorities’ revenues were also scrapped, with MPs opting instead to extend their budget by €500 million.
A Controversial Fiscal Shift
Communist MP Emmanuel Maurel passionately defended the changes, stating, “We took the Prime Minister at his word and found the additional tax revenues. We’re obliged to look for money; we’ve done the job!” In stark contrast, members of the central bloc and the right criticized the adjustments for causing what they termed an “unbearable fiscal shock.” EPR deputy David Amiel remarked that the commission had effectively turned into a “tax carnival.”
Budget Minister Laurent Saint-Martin expressed his discontent with the committee’s modifications, branding the new tax hikes as “fiscal bludgeoning.”
Despite the committee’s conclusions, the revised text will not advance to the hemicycle for further examination, leaving the implications of these decisions uncertain for the future.