“Tax increase: the tax on museums and leisure activities doubled? This new path considered” In the quest for new revenue for 2025, the idea of doubling a tax on museums and leisure activities will be submitted to the vote of the National Assembly. This is a particularly slippery path that the National Assembly is preparing to embark on. While the debates on tax increases for 2025 are to be held until this Friday, October 25, a new idea for additional revenue for the state coffers will be submitted to the vote of the deputies. It is unexpected to say the least and should not fail to be commented on if it is adopted. Currently, museums, historical monuments, amusement parks (for children or those seeking thrills), mini-golf courses, treetop adventure courses, karting, escape games, laser games, nightclubs and even various fairs or exhibitions only apply a VAT rate of 10% to their prices. However, it is proposed that as of January 1, this rate will double to 20%. Which would mechanically lead to an increase in the ticket price, which would not go into the pocket of society but into that of the country. Concretely, this could concern – to mention only the most emblematic – the Louvre Museum, the Eiffel Tower, Disneyland Paris or the Parc Astérix, the Loire Valley castles or any leisure activity popular with children. For parents, this could represent a real blow to the budget, with increases, per ticket, which could represent 1 to 5 euros. The idea did not come from the government but from the right-wing media MP Philippe Juvin. His proposal has already passed a first stage since the deputies of the finance committee adopted his initiative. It will be put to the vote again, this time by the entire National Assembly. If it is adopted, it remains to be seen whether the government will retain it in the final draft or whether it will ignore it by forcing through its initial text, using 49.3. Doubling VAT on this sector could bring in an additional 100 to 300 million euros in 2025. Latest updates End of a tax advantage for regional councillors. The allowances received by these elected officials previously benefited from a tax reduction of 7,650 euros. The deputies have decided to put an end to it. Will the government keep this decision ? This would therefore lead to an increase in taxes on the compensation received by these elected officials. Another tax increase adopted by the deputies: it will now be necessary to remain the owner of one's main residence for at least 5 years to not have to pay tax on the capital gain. Until now, six months was enough. However, exceptions are already planned: sale to purchase another main residence, professional transfer, long-term hospitalization, entry into an EHPAD, death or separation. The again, the issue is whether the government will add this amendment to the final text and insert it into law in 2025. The deputies have adopted an amendment to increase part of the real estate tax. Currently, people who sell unfurnished building land, i.e. without construction, must pay the State 19% of the capital gain made compared to the purchase value. The deputies voted for this rate to increase to 30%! Will the government add this new measure to the law ? Before the opening of the debates in the National Assembly, the deputies of the Finance Committee voted for an increase in the price of AirBnb rentals. Not directly, but by creating a tax on this activity: the value added tax. Until now, renters did not have to pay VAT to the State. The latter could now collect it. A rate of 10% VAT could be applied to from January 1st, if the deputies and senators definitively adopt this measure. A tax that will necessarily be passed on to the price of rentals. As the government seeks new revenue, the idea of increasing VAT on leisure activities has been floated. Currently, the state receives 10% on each entry. In a few weeks, it may collect 20%. The idea was put forward by MP Philippe Juvin and will be examined in Parliament after many other elected officials have approved. the proposal in a first step. This would concern “exhibitions, sites and installations of a recreational nature”, namely all the aforementioned activities, but also museums, monuments and historic buildings (the Eiffel Tower for example), parks and botanical gardens or even all types of amusement parks (including Disney and Asterix). For a price range from 10 to 50 euros, this would result in a price increase of 1 to 5 euros. per ticket, the increase in the tax being inevitably passed on to the price paid by the visitor. The government is paving the way for Article 49.3 just one day after the start of the examination of the draft law concerning the 2025 budget. The use of this constitutional tool was “discussed” during the Council of Ministers scheduled for Wednesday, October 23, government spokesperson Maud Bregeon said on France 2. “It's the rule, it's a constitutional possibility available to the government. But it's not the will of the Prime Minister,” added the Macronist. What to expect ? Explanations in our article.
13:30 – A tax reduction removed
12:01 – Another toughened real estate tax
11:36 – Real estate tax increased to 30%
11:14 – AirBnb prices up 10% ?
11:05 – Leisure activities soon to be more expensive due to a tax increase ?
10/23/24 – 4:56 PM – Tax increases adopted in force ?
10/23/24 – 07:59 – The Assembly expands and perpetuates the high-income surcharge
This was not what was planned, but the deputies decided to adopt a text in the examination of the budget which confirms the new tax contribution of high-income households proposed by the government, but by broadening the base of this surcharge. The deputies chose last night to introduce a minimum tax rate of 20% for households declaring more than 250,000 euros of annual income for a single person. The government wanted it to be very clearly stated that this tax would only be introduced for three years, but the amendments tabled by the left and the MoDem have changed the situation: this time limit has been removed. Out of 258 deputies who took part in the vote, 191 voted in favour. for and 35 against the adoption of this text. The MoDem marks its difference with the “common base” of the government parties in the examination of this budget. Let us specify that the government can still have its initial text adopted if it resorts to article 49.3 of the Constitution.
22/10/24 – 20:11 – The main tax on electricity doubled
On the sidelines of the presentation of the 2025 budget on October 10, the government confirmed that electricity would decrease… but that the famous TICFE would increase. The exact increase will not be decided until the beginning of the year, but a line of conduct will be followed: “guarantee a decrease of at least 9% in the regulated electricity sales tariff as of February 1, 2025.” Bercy is working on a range "around 50€/MwH", while it is currently at 21€/MwH, more than double, and a level higher than that experienced before the energy crisis.
22/10/24 – 18:27 – Several tax increases on cars
This is a sensitive measure: the increase in taxation on cars. The government plans to toughen penalties on cars that emit the most CO2. Currently at 118g of CO2/km, the threshold for triggering the penalty will be lowered to 113g in 2025 and then to 106g in 2026. At the same time, the amount of the penalty to be paid will increase, by 10,000 euros per year until 2027 for the most polluting cars. In addition, the tax linked to the weight of the car will also be triggered earlier: from 1500kg in 2025 compared to 1600kg currently.
10/22/24 – 5:41 PM – Tax on the construction of a house set to increase
Right-wing and centrist MPs are proposing to increase the cost of the development tax. This is a tax paid when a building permit is issued, i.e. when a house is built, or when work is carried out on a garden shed, an extension or even a swimming pool. These elected officials want departments to be able to collect more, by increasing the rate from 2.5 to 3.5%. For example, for a construction of 100m², the amount of tax paid to the department could increase from 1142.50 euros to 1599.50 euros, an increase of 457 euros. The Finance Committee voted for this change. The Assembly, the Will the Senate and the government be of the same opinion ?
10/22/24 – 4:37 PM – A tax on vaping products studied
Less expensive and allowing you to better manage the dose of nicotine you want, vaping is in vogue. Enough to interest the State, which now sees these devices as a financial windfall to bring a little more money into its coffers. Surprisingly enough, vaping liquids, even when they contain nicotine, are not subject to the special tax on tobacco, as is the case for cigarettes and cigars. A bias that could end. The creation of a specific tax on these products will be submitted to the vote of deputies and senators. The idea is to apply a tax of 15 cents per milliliter of liquid, or 1.50 euros per product, the quantity generally being 10ml. This supplement would be mechanically reflected in the purchase price.