Tax increaseIn effectEnergy excise dutiesRegional

Regional modulation of the fuel excise duty (TIPP)

Article 84 of the 2005 Amending Finance Act, adopted after authorisation by the Council of the European Union on 24 October 2005, allows regional councils and the Corsican Assembly to raise or lower the rate of the domestic consumption tax on petroleum products (TIPP) applicable in their territory from 1 January 2007 (Article 265 of the Customs Code). The modulation is capped at €1.77 per hectolitre for unleaded petrol and €1.15 per hectolitre for diesel. According to the Ministry of the Interior, most regions used their full capacity to increase it. This mechanism remains in the domestic consumption tax on energy products.

Measure originators

InitiatorGVT

Thierry Breton

Gouvernement

InitiatorGVT

Jean-François Copé

Gouvernement

🇪🇺

European origin

Directive/Regulation

Amount

1.77 €/hl

Impact on public finances

Brings in 500 m €/yr2007 estimate · Local authorities

Source of the estimate: Réponse du ministère de l'intérieur à la question écrite n° 25308 de M. Jean Louis Masson (JO Sénat du 01/03/2007) (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2007

Measure impact

Motorists and hauliers pay up to 1.77 cents more per litre of petrol and 1.15 cents more per litre of diesel in regions that voted the maximum increase, from 2007.