France plans to increase taxes on air pollution

The French tax on air pollutants such as sulphur oxides and solvents is going to triple, France's government has announced in its budget proposal for 2013. The tax will also be extended to five pollutants including benzene, mercury and arsenic.
The decision confirms pledges made by French prime minister Jean-Marc Ayrault in September at a conference on future environmental policy. It will help the country comply with its air quality obligations under EU legislation.

According to the budget proposal unveiled on Friday, the existing tax on sulphur oxides, non-methane hydrocarbons, solvents and other volatile organic compounds will be set at €136.02 per tonne compared with €45.34 now. In total, the measure is expected to raise about €38m from next year.

France is the member state with the second lowest level of green taxation in the EU after Spain. In country-specific recommendations issued in May as part of the European Semester, the European Commission said France had "ample room" for increasing green taxation to decrease the tax burden on labour.

In the transport sector, the French government wants a further tightening of the 'bonus-malus' tax for cars emitting high levels of CO2. The government expect to raise €177m from this tax. Subsidies to boost the purchase of cleaner vehicles will also be increased to €404m compared with €234m this year.

Follow Up:

Full budget proposal plus details about environmental aspects from the ministry for ecology and sustainable development and summary of fiscal measures