Reintroducing a digital vehicle tax

The Institut mobilités et transitions (IMT) is proposing the reintroduction of a vehicle vignette in a digital form to make up for the loss of tax revenue due to the increasing number of electric vehicles on the roads. This proposed fee would vary between 30 and 910 euros annually, depending on factors like household income and vehicle type.

Loss of tax revenue from electric vehicles

The removal of the vehicle vignette in 2001 created a gap in the state's tax revenues, and the IMT warns that without reform, this gap could reach 22 billion euros by 2035. French road taxation brought in 67.5 billion euros in 2025, or 4.6% of public revenues, with 27.7 billion euros coming from excise duties on petroleum products.

Impact of electrification on road funding

The shift to electric vehicles is reducing the state's main source of road funding, creating a fiscal paradox: while the government promotes electrification, it is losing critical revenue from fuel taxes. Electric vehicles use the same roads as traditional vehicles but do not contribute as much to road maintenance funds.

Projected shortfall and proposed solution

According to the IMT's September 2026 report, the annual shortfall could reach 2.5 billion euros by 2030 and grow to 22 billion euros by 2035 without intervention. To address this, the think tank proposes an "annual vehicle fee" that would gradually replace taxes on fossil fuels.

New fee calculation and fairness

The new fee would be calculated based on five factors: household income, number of vehicles, engine type, place of residence, and country of origin. This approach aims to prevent the regressive nature of fuel taxes, which disproportionately affect lower-income households.

Digital vignette in neighboring countries

Belgium plans to implement an electronic vignette starting in 2027, with fees ranging from 90 to 125 euros annually, depending on a vehicle's emissions. Austria and Switzerland have already used similar systems for several years, and France could learn from these models.

Proposal in political debate

The annual vehicle fee is still a proposal, and the IMT aims to influence discussions ahead of the 2027 presidential election. While no candidate has officially supported the measure yet, the topic is slowly gaining traction in budget discussions. The challenge lies in making this new tax acceptable amid economic pressures.