French Prime Minister Elizabeth Bourne is leaving open the possibility of a new tax on corporate “surplus profits” after lawmakers rejected the move last month.
In an interview published in Le Parisien newspaper, Bourne said she would prefer alternatives to an emergency tax, such as companies cutting prices for consumers and giving bonuses to workers to boost their purchasing power.
But he noted that while the government’s policy is to reduce corporate taxes, the public would struggle to understand how businesses can make huge profits while ordinary people struggle to make ends meet.
Her comments could help fuel fresh calls for a windfall tax on energy producers such as TotalEnergies and Engie, as well as shipping giant CMA. A proposed law was voted down last month by the National Assembly. While the government had not backed such a move, it has gathered some support among MPs in President Emmanuel Macron’s party.
Germany is considering a windfall tax on energy companies, with the proposal gaining momentum as the governing coalition tries to resolve a dispute over who should bear the brunt of skyrocketing gas costs. Spain unveiled plans last month to impose levies on banks and energy companies to fund the government’s response to the growing cost-of-living crisis.
In France, Bourne said in the interview: “I am not closing the door on the taxation of super profits.”
The government will be careful that companies don’t take advantage of a new law that allows them to give staff more tax-free bonuses, he said.
It is also planning a new 1.5 billion euro ($1.5 billion) “green fund” to help local governments with the environmental transition, he said, without saying where the money would come from.
Bourne is scheduled to speak on Monday at a conference organized by France’s main employers’ lobby Medef.
The prime minister also acknowledged the debate surrounding calls to ban or tax private jet flights, saying owners should cut emissions like everyone else.
Source: Capital
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