France’s National Assembly has passed two unexpected amendments to next year’s budget bill, targeting multinational corporations with steep tax increases. The measures, approved late Tuesday, double the existing digital tax on global tech firms and introduce a 25 percent minimum tax on profits earned from activities in France.
The votes, backed by both far-right and far-left lawmakers, defied Prime Minister Sébastien Lecornu’s government and deepened uncertainty surrounding the ongoing budget negotiations. Finance Minister Roland Lescure warned the new taxes could breach international agreements and harm France’s investment appeal.
Under the new proposals, multinational companies would face a minimum 25 percent tax rate on French-linked profits, even if those profits are declared in low-tax jurisdictions. Additionally, tech giants with global revenues above €2 billion would see their digital tax rate rise from 3 to 6 percent.
The government, which lacks a parliamentary majority, faces an uphill battle as the bill moves to the conservative-controlled Senate, where the measures could be struck down. The constitutional court may also intervene if the taxes are deemed excessive. Lawmakers are expected to debate potential wealth tax measures next week.