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Friday, September 4, 2009

France Sees Initial Carbon Tax At 14 Euros Per Tonne

France plans to set a proposed carbon tax at 14 euros ($19.9) per tonne of carbon dioxide starting from next year, Prime Minister Francois Fillon said in an interview to be published by Figaro magazine.

A special advisory panel, headed by former Socialist Prime Minister Michel Rocard, had recommended billing 32 euros for every tonne of carbon dioxide emitted in 2010 and lifting the levy gradually to 100 euros per tonne by 2030.

"We have decided to apply the tax in a progressive manner. Starting with the price per tonne on the market, that is to say 14 euros," Fillon said in the article set to appear in the magazine's Saturday edition.

The proposed tax has sparked heavy criticism from intensive users of fuel such as farmers and fishermen who will see the cost of a liter of petrol rise as a result.

The impact of a new carbon tax would be offset for companies through provisions to reduce the tax burden related to investment and the government was studying ways to soften the blow for the country's poorest households.

"It is out of the question that we will apply this uniformly to those French people that have choices and those who don't," said Prime Minister Francois Fillon.

Source : REUTERS

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