Sunday 11 October 2009

Sunday 11 October 2009

New Carbon tax


A carbon tax is to be introduced in France, accompanied by a compensatory reduction in income tax. The tax (Contribution Climat-Energie), is planned to come into operation on 1st January 2010, will be paid by households & companies who consume oil, gas or coal. (The tax will not be applied on electricity as less than 10% of electricity generation is coal powered).

The rate of tax has been set at 17 € per ton of CO² emitted, a rate half of that proposed by the committee set up by President Sarkozy to provide recommendations on the introduction of the tax.

For example, this will mean an increase of approximately 4.5 cents in the price of a litre of diesel and 4 cents on a litre of petrol. In practice the impact will vary significantly between households, with some households likely to be paying 200 € a year or more in tax.

The French government have made it clear that the rate has been set lower than they would have desired in order not to impact adversely on household budgets during the current economic downturn.

The government have stated that it is not their aim to increase the total level of taxes paid by households and companies, so other taxes will be reduced. All households will receive either a reduction in the level of income tax they pay each year, or alternatively a tax credit (Chèque Vert) if they do not pay tax. The amount of the tax rebate or credit will depend on the size of the household and the location. You can check out your own situation by visiting the following website (in French) :-
http://www.taxe-carbone.clcv.org/index.html

The government has also announced the abolition of the Taxe Professionnelle in 2010, although this tax is being replaced by a new system of tax, called the Cotisation Economique Territoriale, details still to be finalised. It may come as no surprise to many that there will be concessions for transport companies, farmers, and fishermen. Farmers and fishermen will receive a rebate of 75% in the first year! Look out for new measures for energy conservation and low polluting cars.


Peter Elias (Agent Commercial), La Moinerie, 79500 Paizay le Tort, Deux-Sèvres, FRANCE

Tel: 00 33 (0)5 49 27 01 22 or Tel: 00 33 (0)8 77 07 58 99 Mob: 00 33 (0)6 62 28 02 25
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