France evaluates fiscal alternatives as electric vehicle adoption threatens fuel tax revenues

France is facing a significant fiscal challenge as the transition to electric vehicles threatens to reduce fuel tax revenues. The state estimates a loss of approximately 13 billion euros in TICPE revenue by 2030 due to the declining use of gasoline and diesel.

While there is public debate regarding the implementation of a kilometer-based tax—similar to models being prepared in the United Kingdom—an official report from the Conseil des prélèvements obligatoires (CPO), an independent body under the Cour des comptes, suggests that premature taxation of electric vehicle usage could be a strategic error.

The report also addresses concerns regarding the monitoring of home charging. It notes that current electricity meters, such as the Linky meter, cannot distinguish between different household appliances. Implementing a specific tax on home charging would require complex and costly solutions, such as certified sub-meters for every household.