France to Lower Weight Threshold for Tax on New Gas-Guzzlers

(Bloomberg) -- France will lower the weight threshold for taxes on new gas-guzzlers to speed up the transition to electric vehicles.

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The tax currently applies to purchases of new cars weighing more than 1.8 metric tons and that cutoff will be lowered, Transport Minister Clément Beaune told “Le Grand Jury” program on RTL-Le Figaro-LCI. The new threshold could be announced in the budget bill for 2024 that is due to be released later this year.

“The weight has to be taken in account for environmental reasons,” Beaune said. “We have to develop electric vehicles in France.”

The government previously indicated it wouldn’t increase the overall tax burden to fund the shift away from fossil fuels. However it may reduce tax breaks on diesel used by public works companies and would consider incentives for households and lenders to invest more in green products, Finance Minister Bruno Le Maire said last month.

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