Bercy targets fuel tax niches for 2027 budget

Amid surging fuel prices, Bercy sent a circular to ministries to scrutinize "brown" tax niches, over half of which relate to fuels. The document outlines orientations for May fiscal conferences ahead of the 2027 finance bill. The goal is to cut fiscal spending.

On Thursday, Bercy's Direction de la législation fiscale and Direction du budget sent a circular to various ministries. The letter sets out the main orientations for "fiscal conferences" scheduled for May, as part of preparations for the initial 2027 finance bill.

The document asks ministries to identify measures for inclusion in the draft, emphasizing cuts to fiscal spending costs. Key targets include a thorough review of "brown" fiscal expenditures, over half of which are fuel-related tax niches.

This move comes amid heated political debate on fuel taxation during surging prices. Bercy aims for budgetary savings next year, against a backdrop of public finance pressures.

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French Prime Minister Sébastien Lecornu presents the 2026 budget with tax hikes and spending cuts in a press conference at the National Assembly.
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French government unveils 2026 budget with tax hikes and spending cuts

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On October 14, 2025, Prime Minister Sébastien Lecornu presented the 2026 finance bill, aiming to cut the public deficit to 4.7% of GDP through €14 billion in extra tax revenues and €17 billion in spending savings. The budget targets high earners, businesses, and social expenditures, while drawing criticism over its feasibility.

The differential contribution on high incomes, created in 2025, brought in only 400 million euros, nearly five times less than expected, according to the Ministry of Economy and Finance. This tax, aimed at ensuring a minimum 20% taxation for the wealthiest, was largely circumvented by targeted taxpayers. It highlights the challenges in effectively taxing very high incomes in France.

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Debates on France's 2026 budget project promise to be fierce in the National Assembly, with over 1,700 amendments filed for the revenues section. Budget rapporteur Philippe Juvin sharply criticizes the planned tax increases and calls for cuts in public spending. The finance committee review begins on Monday, October 20, in a tight schedule.

France's 2026 budget remains inapplicable due to multiple referrals to the Constitutional Council, including by the government itself. This unprecedented move since 1977 suspends its implementation until a decision expected by February 20. Several opposition parties have also challenged fiscal and social measures in the text adopted on February 2.

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Debates on the 2026 budget in the French National Assembly are bogging down, with unusual alliances between RN, PS, and MoDem leading to the adoption of tax increases totaling 34 billion euros in 24 hours. Prime Minister Sébastien Lecornu describes the situation as a 'very uncertain endurance race', while general rapporteur Philippe Juvin deems it highly likely that the text will not be examined on time. Industrialists denounce overtaxation threatening reindustrialization.

Starting January 1, 2026, France implements a range of measures impacting personal finances, housing, transport, and the environment, amid the lack of an adopted state budget. Key adjustments include a 0.9% increase in basic pensions, the suspension of the MaPrimeRénov’ scheme, and price rises for gas and postal packages.

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The Senate's finance commission adopted a series of amendments to the 2026 budget draft on Monday, November 24, aiming for lower corporate taxes and more savings while keeping the deficit target at 4.7% of GDP. Amid the blockage in the National Assembly, Prime Minister Sébastien Lecornu called for votes on absolute priorities such as defense and agriculture. The Senate also rejected government-proposed restrictions on sick leave.

 

 

 

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