top cx logo
cx logo
Explorearrow down
search icon
arrow down

€1bn shortfall after tax U-turn

Introduction of eco-tax on HGVs will be suspended, but the system still needs to be paid for

THE introduction of a tax on HGVs designed to get freight off the roads and on to rail and shipping has been delayed, the government has announced.

It comes following anti-tax protests in Brittany over the weekend and leaves the government with a €1bn hole in its accounts.

It still needs to pay the firm Ecomouv’ - which is in charge of levying the tax - and has already installed the 180 gates and computer systems needed to track the lorries as they use public roads.

The €650million setup and running costs were due to be paid in part via funds raised by the tax.

Breaking the contract, drawn up in 2011 under the Sarkozy government, would cost €800m, but the government is likely to pay the society anyway, despite the system not operating.

The total loss of revenue to the government over the course of a year could run to one billion euros, although no new date has been set for the start of the tax.

Ministers are due to meet with protest groups to discuss the tax, which was to be levied on all HGVs above 3.5 tonnes using main public roads in France.

Transport projects that were due to be funded by the tax are now also in jeopardy. Questions are already being raised about the financing of the recently-agreed high-speed rail line between Bordeaux and Toulouse.

Related articles:
Brittany protests against eco tax

Photo: flickr /vincent desjardins

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Income Tax in France 2023 (for 2022 income)*
Featured Help Guide
- Primarily aimed at Britons, covers pensions, rent, ISAs, shares, savings and interest - but also contains significant general information pertinent to readers of other nationalities - Overview of online declarations + step-by-step guide to the French printed forms - Includes updates given automatically after this year's site opened
Get news, views and information from France