French MPs narrowly reject extension of extra corporate levy for 2027
Vote lost by two votes, but the government is expected to include the levy in the 2027 budget via Article 49.3 or an executive decree.
French MPs narrowly rejected an extension of the extra corporate levy that had been included in the draft 2027 budget, losing the vote by only two votes.
Government likely to bypass the defeat
The parliamentary setback is unlikely to determine the measure’s final fate: the government is expected to include the levy in the 2027 budget either by invoking Article 49.3 of the French Constitution or by issuing an executive decree. A similar path was taken last year, when the tax was incorporated into the 2026 budget despite a prior rejection in a second reading.
Lawmakers are due to vote on the entire revenue section of the budget on 3 November, a vote that is also expected to be rejected in the lower house. If that happens, the text will be transmitted to the Senate for further consideration.
The extra levy was first introduced in the 2025 budget for one year and was extended in 2026 with an increased threshold. It now applies to companies with turnover of at least €1.5 billion and is calculated as a percentage of the company’s corporate profit tax. Government figures indicate the measure affects roughly 400 companies.
Political debate in the assembly has centred on the measure’s fairness and its impact on investment and competitiveness, with critics arguing the levy singles out large employers while supporters say it is needed to bolster public finances.
Photo: press material from the event
