VAT reduction for public transport proposed

On Monday, November 2, deputies approved an amendment to the 2027 budget that would apply a reduced VAT rate of 5.5% to public mass transit services. This amendment, introduced by the Ecologist and Social group, focuses on daily transport services operated by local authorities, such as buses, trams, and regional trains.

Amendment faces uncertain future

The amendment passed with 24 votes in favor, 15 against, and 55 abstentions. However, its inclusion in the final 2027 budget is not guaranteed, as the budget bill is still under review and subject to further changes.

Supporters argue for climate and affordability

Eva Sas from the Ecologist and Social group defended the measure, stating that daily transport is a necessity like food, which already benefits from a 5.5% VAT rate. She emphasized that reducing the rate from 10% to 5.5% would make public transport cheaper, encouraging people to leave their cars and helping the environment.

Opposition highlights rural concerns

Kévin Mauvieux from the National Rally criticized the amendment, arguing that it creates a form of social segregation against rural residents. His group had previously proposed applying the 5.5% rate to fuels and diesel, a proposal that was rejected. He pointed out that rural areas often lack public transport options, leaving residents reliant on cars.

Broader support for essential goods

Despite the disagreement over public transport, the LFI and RN groups achieved a common goal by securing amendments to eliminate VAT on essential food and hygiene products. However, like the public transport measure, these changes are not certain to be included in the final budget, as the overall budget approval remains uncertain.