France considers new vehicle vignette to offset electric car tax losses

The debate over a renewed automobile vignette is resurfacing in France due to the rise of electric vehicles. As the transition to electric mobility progresses, traditional road tax revenues derived from fuel are declining.

According to the Institut mobilités et transitions (IMT), road-related taxes are expected to account for 4.6% of total public revenue in 2025, down from 5.6% in 2019. Projections suggest this share could drop to 3.4% by 2035 if no changes are made. The shift is driven by the fact that electric vehicles do not contribute to road taxation through fuel excise duties and VAT in the same way thermal vehicles do.

The IMT estimates that the loss in state revenue could reach 8 billion euros by 2030 and 22 billion euros by 2035. To address this gap, the think tank is proposing an annual electronic vignette for all households owning a vehicle, whether thermal or electric, with costs potentially ranging from 30 to 910 euros.