Higher rates for the general tax on polluting activities (TGAP) and annual indexation to inflation

Article 39 of the amending finance act for 2006 raises, from 1 July 2007, the rates of the general tax on polluting activities (TGAP, Article 266 nonies of the Customs Code) applicable to waste, atmospheric emissions, lubricants generating used oils, detergents, extracted materials and classified installations; apart from waste, these rates had not been revised since 1999. From 2008, the rates are raised each year in line with the upper limit of the first income tax bracket. In 2007, TGAP revenue is allocated to the environment and energy agency ADEME up to €25 million. Article 40 also exempts from TGAP waste storage facilities, such as bioreactors, that capture and recover all their biogas. The government had proposed an entry into force on 1 January 2007; the National Assembly postponed it to 1 July 2007.