Financial Times FT.com

French car tax to spur green upheaval

By John Thornhill in Paris and John Reed in London

Published: July 1 2008 20:46 | Last updated: July 1 2008 20:46

France is to slap an annual green tax on high-emission cars, such as sports utility vehicles, and extend punitive taxes to more environmentally damaging products in an attempt to revolutionise consumer behaviour and combat climate change.

Jean-Louis Borloo, ecology minister, said on Tuesday that the government’s carrot-and-stick “bonus-malus” tax system was proving successful and would be accelerated. The aim is to cut taxes further on environmentally friendly products while raising them on the most harmful products. “This will be a revolution. We must impose a fair ecological price,” he said in an interview with Le Parisien newspaper.

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