France to increase taxes on controversial diesel fuel

“The government will increase taxes upon diesel over the next 5 years (…) with the purpose of bringing the price of both energy sources (petrol and diesel) in order to roughly the same level”, this said in a statement in Wednesday.

Diesel fuel fees will rise by 1 cent for each litre within 2016 and 2017, “generating an income of more than 245 mil euros”, said French Admin of State for the Spending budget Christian Eckert.

Diesel happens to be taxed at some 20 pennies cheaper per litre compared to petrol and represents 80 % of fuel volumes bought from the country and 56 percent of new-car sales.

The present way of taxation has led to increasingly more cars running on diesel powered and it “has triggered genuine concerns among many France people about the impact associated with air quality”, said the federal government.

In return, the government, which worries criticism over its taxes policy, said it will make use of the new income to reduce nearby tax for modest families and pensioners.

(The Nationwide Assembly also passed on Friday a two billion dinar plan in tax slashes for low-income households. )

The measure comes ahead from the Climate Change Conference inside Paris (30 November -- 11 December) which should secure a pact about greenhouses gases and among revelations that Volkswagen offers equipped 11 million regarding its diesel cars globally with software that can avoid pollution controls.

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