French PM vows gas price freeze and tax cuts to
curb energy inflation
Jean Castex says latest increase in gas price will be
‘the last.’
FRANCE-HEALTH-VIRUS-POLITICS
French
Prime Minister Jean Castex | Benoit Tessier/AFP via Getty Images
BY
PIERRE-PAUL BERMINGHAM
https://www.politico.eu/article/french-government-to-freeze-gas-prices-lower-tax-on-electricity/
The French
government will freeze gas prices and cut taxes on electricity to slow energy
inflation, the prime minister announced Thursday evening.
“We will
freeze, freeze — there will be no more increases in the price of gas,” Jean
Castex told TV station TF1. “I have that power.”
The price
of gas is slated to jump 12.6 percent on Friday. Castex confirmed this increase
would indeed occur, but vowed “it is the last.”
The prime
minister noted that gas prices are expected to rise a further 30 percent by the
end of the year, while the cost of electricity is forecast to jump by 10 to 12
percent on February 1.
Castex
noted that experts predict prices will fall as of next April. “We have a bump
to handle,” he said. If the expected decline does not transpire, Castex said,
the government “could take measures to lower taxes,” such as adjusting VAT
rates.
As for
electricity rates, Castex promised to amend the upcoming budget to lower taxes
on electricity. He said recent price increases had already boosted VAT revenues
by €600 million, money which he “gave back to the French people” in the form of
€100 bonuses to some taxpayers.
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