Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom


The French Constitutional Council rejected the carbon tax

The French Constitutional Council pronounced a negative opinion on the cherished by President Sarkozy and his government carbon tax project.

The carbon tax was meant to apply on products related to high emissions of CO2, like petrol, gas, coal, fuel oil, LPG (liquefied petroleum gas) when used as combustible. It was supposed to be imposed to every physical or moral person, except those already subject to the European Emissions Trade System (ETS).

Obviously, such a tax represents an additional cost for French manufacturers and will make it more difficult for them to compete abroad. This is why the government decided to smooth the disposals for many sectors as agriculture, fishing, road transport etc.

Those exceptions are precisely the motive reason for the Constitutional Council rejection of the project – the tax is in contradiction with the principle of equality of all citizens before the tax.

The French government will have to renounce to its eco-ambitions (which, unfortunately seems improbable), or find a compromise, reducing the exonerations from the tax without disappointing too much the previously exonerated groups. A delicate position for the government three months before the regional elections.

Share this article :

Related contents ...

Efficiency and productivity of tax courts
by Roberto Ippoliti and Giovanni B. Ramello

New Policy Paper Available: Taxing corporations: why it is not only bad, but unjust
by Pierre Bessard and Fabio Cappelletti


The market for sex, human trafficking and the EU

Tax policies in Poland, Slovakia, and Bulgaria: sitting on a ticking bomb or catching up with the West?



Any message or comments?

Show Form

 css js

By continuing browsing our website, you agree with our cookies policy
C L O S E

Monthly newsletter
Receive our publications for free