French Senate Approves Tax Increases on Bottled Water, Airline Tickets, and Gas Boilers

The measures, part of the 2025 budget plan, aim to boost revenue and address environmental concerns, despite government opposition to some proposals.

The French Senate has voted to raise the VAT on bottled water from 5.5% to 20%, citing environmental concerns and recent scandals in the bottled water industry.
The tax increase on bottled water is expected to generate between €150 million and €300 million annually, with exemptions for overseas territories facing water distribution challenges.
A higher solidarity tax on airline tickets was also approved, with minimum rates for economy class doubling to €5.30, although exemptions were granted for certain domestic routes and overseas flights.
The Senate voted to increase the VAT on gas boilers to 20%, aligning with the government's proposal, which is projected to raise €200 million in 2025.
The government opposed some of the measures, arguing that VAT is not an effective tool for incentivizing behavioral change, but the Senate defended the changes as necessary for ecological and fiscal reasons.