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France denies rumors of per-kilometer tax on electric vehicles
The French government has formally denied rumors regarding the implementation of a per-kilometer tax for electric vehicles. While social media reports suggested a distance-based charge, officials clarify that no such plan has been voted on. Instead, experts are discussing a potential annual possession tax of approximately 95 euros per vehicle, which would be calculated based on the vehicle's weight or footprint.
This proposed measure aims to offset the decline in fuel tax revenues, which are expected to drop by 35 billion euros annually as the fleet electrifies. Such a weight-based tax could potentially generate 3 billion euros, covering about 10% of expected energy excise losses by 2050. However, the Cour des comptes has not included this specific estimate in its formal recommendations.
France's approach contrasts with several neighbors. Germany utilizes a kilometer-based tax for heavy goods vehicles, while Iceland has implemented a per-kilometer charge for electric vehicles. The United Kingdom also plans to introduce an Electric Vehicle Excise Duty in 2028. Experts warn that any significant increase in electricity taxes in France must be carefully managed to ensure electric vehicles remain more cost-effective than internal combustion engine vehicles.
Entities
Cour des comptes · French Ministry of Economy · Office for Budget Responsibility