Blow for Macron as French parliament approves special tax on 'super profits'
Lawmakers in France's National Assembly have voted in favour of an amendment to the 2023 budget that would raise taxes on dividends paid to large corporations for their windfall profits.
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A law to impose an exceptional 25 percent tax on "super profits" was narrowly voted down by the National Assembly in July.
But in a blow to President Emmanuel Macron's government and its pro-business push, the amendment was voted through late Wednesday by lawmakers from the left-wing Nupes alliance and far-right RN, but also by some of Macron's allies in the centrist Modem party, who originally proposed it.
Adopted by 227 votes in favour and 88 against, it was also supported by 19 MPs from Macron's Renaissance group.
Malgré les demandes de retrait du rapporteur général @jrcazeneuve et du ministre @GabrielAttal, l'amendement de @jp_mattei visant à taxer à 35% les super-dividendes excédant de 20% la moyenne de ceux versés au cours des cinq dernières années, est adopté. #DirectAN #PLF2023 pic.twitter.com/gPzGvmT3IX
— LCP (@LCP) October 12, 2022
"We have a perfect illustration of the fact that you are in your corridor and do not want to get out," said MP Manuel Bompard of the far-left France Unbowed (LFI), pointing out that the executive, saying it was open to proposals from MPs, had not backed the Modem initiative.
"It is a very reasonable and constructive amendment," said RN MP Jean-Philippe Tanguy.
'Temporary tax increase'
The new tax applies to large companies which have made more than 750 million euros in turnover.
It would increase the charge they pay on dividends from 30 to 35 percent if the dividends are at least 20 percent higher than the average of what they paid in the 2017-2021 period, according to the amendment.
Public Accounts minister Gabriel Attal warned the tax could send out a negative signal for "the country's attractiveness".
The government could still block the temporary tax increase using special constitutional powers, under article 43.9, to quash amendments before a final vote on the whole 2023 budget bill in both houses of Parliament.
After Macron's government lost its governing majority in legislative elections in June, it is likely to resort to using those powers to get the budget bill through.
The amendment says that measures were needed in addition to a new mechanism on power companies' revenues agreed at the EU level at the end of September and supported by the French government.
It says that energy and shipping companies along with banks and insurers needed to be encouraged to make climate investments rather than "super-dividends" or "super share buybacks".
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