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Budget: Senate blocks super profits tax

The Senate, dominated by the right-wing opposition, rejected a tax on super profits on Saturday night, rejecting amendments from the left and centrists that would have taxed the windfall profits of large corporations against government advice. Senators voted 181 to 97 to reject the left-wing amendment and another, introduced by the centrists, by a more stringent 181 to 152 vote in the first reading of the 2023 finance bill.

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The left has revived debate on the controversial topic in the Senate after the Constitutional Council’s decision dashed hopes of holding a referendum on taxation.super profits“. During the debate, Communist Senator Eric Boquet condemned the government, which “refuses to seek super profits“. “Abandoning this exclusive investment sends a bad message to the French– confirmed Bernard Delcroce, senator of the pro-centrist group.

Public Accounts Minister Gabriel Atal justified his refusal in his response by assuring that this measure “would also tax those companies that had nothing to do with the situationsharp increase in the prices of energy carriers. The Senate already rejected the tax idea this summer.super profits“where”unexpected profitafter another combined attack of the big groups, leftists and centrists.

“Investment” at EU level

The presidential majority, after cracks appeared within it over the issue, seems to have moved to the side of the government’s position, the solution of which has been found. it is the agreement signed between the member states of the European Union on September 30. The European Commission then stated that it wanted to request “temporary solidarity contributiongas, coal and oil producers and distributors who are making huge profits thanks to price increases after the war in Ukraine.

It should be set at 33% of the excess profit share in 2022, i.e. more than 20% higher than the 2019-21 average, taking into account measures taken by states that already tax these benefits. France is moving this European agreement into its 2023 budget, which Gabriel Attal says should bring “11 billion euros“in the state.

The commission was careful not to use the word “”.taxbecause any new tax provision on a European scale would require the unanimity of the Twenty-Seven, a more complicated and risky procedure than adoption by a qualified majority.

Source: Le Figaro

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