France’s National Assembly narrowly approved a measure thursday to eliminate value-added tax on essential goods and implement price controls, a move proposed by the La France Insoumise (LFI) party. The vote, which passed 70-62 with abstentions from the governing coalition and the Rassemblement National, comes amid ongoing debate over france’s 2026 budget and rising concerns about the cost of living. The proposal now faces further legislative hurdles and questions regarding its constitutionality as lawmakers race to finalize the budget by Sunday.
France’s National Assembly on Thursday approved a measure to eliminate value-added tax (VAT) on essential goods, coupled with price controls, following a proposal from the La France Insoumise (LFI) party. The vote was close, with the governing coalition abstaining and the Rassemblement National (RN) also choosing not to participate.
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The French National Assembly on Thursday, November 20, approved the elimination of value-added tax (VAT) on essential goods, alongside a plan to freeze prices, as proposed by the La France Insoumise (LFI) party. The measure passed narrowly, with 70 votes in favor and 62 against, despite opposition from the government. The Rassemblement National (RN) abstained from the vote.
LFI argues that VAT is a “socially unjust” tax, disproportionately impacting lower-income households. The aim is to bolster purchasing power by reducing the cost of essential items, while preventing retailers from increasing their profit margins through price controls.
The debate featured heated exchanges between LFI and RN representatives, with the latter proposing a similar measure but without price controls. “You refuse the price cap, which means you’re allowing multinational retailers to increase their margins,” said LFI deputy Aurélien Le Coq. Jean-Philippe Tanguy (RN) countered: “We are not in a Soviet regime, and price controls are illegal. You’re not going to administer billions of references across the entire country.”
The budget rapporteur, Philippe Juvin, also questioned the constitutionality of the measure. The vote is just one step in the legislative process, and the proposal faces further scrutiny. Furthermore, the revenue portion of the state budget bill is expected to be rejected unless lawmakers can complete their review by Sunday midnight, potentially halting progress on the budget.
