France rejects 2027 budget revenue plan amid tax disputes

• French lawmakers rejected the revenue section of the 2027 budget bill in committee, leaving its proposed tax measures facing further legislative uncertainty.
• The proposals include potential tax changes affecting stablecoin swaps and unrealised cryptocurrency gains for people moving abroad.
• The rejection does not automatically enact or permanently kill the proposed measures, which depend on further parliamentary proceedings.

French lawmakers have rejected the 2027 budget bill’s revenue section in committee, leaving the government’s fiscal plans subject to further parliamentary debate.

The Finance Committee voted 31 against, three in favour and two abstentions on 9 October, rejecting the amended revenue package.

National Rally MP Jean-Philippe Tanguy opposed the proposed tax increases, arguing that lawmakers should not approve higher taxes.

The committee’s decisions could widen France’s projected public deficit by about €10 billion, according to preliminary estimates from budget rapporteur Philippe Juvin.

Lawmakers also scrapped a proposed cut to pensioners’ tax relief, which the government had expected to save €1.4 billion.

The committee’s version put the projected deficit at 5.35% to 5.4% of gross domestic product, above the government’s 5% target.

Parliament was scheduled to resume debate on the revenue section on 13 October, using the government’s original draft as its starting point.

The rejection leaves France’s 2027 tax and spending plans unresolved as lawmakers continue negotiations over the national budget.