The French government's 2025 budget, presented in September 2024, focuses on broadening the tax base to increase revenues while aiming to avoid raising tax rates for the majority of households. This strategy is central to efforts to reduce the public deficit, which stood at 5.5% of GDP in 2023.
Key measures include the continued phase-out of the Contribution on the Added Value of Enterprises (CVAE) and adjustments to tax loopholes and niche benefits. The government has stated these adjustments are intended to make the tax system fairer and more efficient, rather than imposing broad-based increases.
Official projections from the 2025 Finance Bill estimated tax and social levy revenues would reach approximately 1,176 billion euros, representing an increase of about 4.5% compared to 2024. This growth is partly attributed to the expected natural progression of existing taxes alongside the base-broadening measures.
The approach has drawn mixed reactions, with some economists and opposition figures arguing that the fiscal adjustments place a disproportionate burden on specific sectors and middle-class households, despite government assurances to the contrary. The final impact on public finances will depend on economic growth and the effectiveness of the implemented measures.
