In Brief
The government is considering raising in 2027 the tax applied to the profits of highway concession companies, moving from 4.6% to 12.2%. This measure would treble the annual levy, rising from about €600 million to €1.4 billion. Although toll prices are capped, it is likely that the companies will try to pass this increase on to drivers. This tax hike could also lead to a slowdown in investments in installing electric vehicle charging stations along the road network.
As part of shaping the 2027 Budget, the government plans to tax the profits of highway concession companies and airports. If this measure becomes law, the consequences could ripple out to motorists. Here’s why.
Raise the TEITLD Tax from 4.6% to 12.2%!
The end of 2026 is approaching. The opportunity for the government to deliberate the budget for 2027. The country’s economic situation is delicate and the state must find money from all corners. Among the options under consideration, the government has discussed the possibility of increasing the taxation on the profits of highway concessionaries and airport operators. Aline this is described by the highway-concession group as a situation to watch closely.
The tax in question is precisely the rate of the TEITLD, the tax on the operation of long-distance transport infrastructures. It was created in 2024 and currently applies a rate of 4.6%. The administration plans to raise this rate to 12.2%. This represents roughly three times as much. In practice, the yield of this tax is currently about €600 million each year. With this increase, the state would aim to total €1.4 billion. A decision that would not be without consequences for motorists.
What are the consequences for motorists?
The state effectively aims to target the profitability of highway operators. It must be noted that their profitability is certainly quite high. Nevertheless, when concessions and the state square off in this kind of standoff, it typically ends up in court. And if the state is ordered to pay, it will have to cover a substantial amount.If this budgetary path is adopted, it would have non-negligible consequences for consumers. Indeed, even if tolls are capped, the state would collect a larger share of the price paid by drivers. There is little doubt that highway operators will attempt to pass this increase through via toll prices.
Another consequence: a slowdown in investments around the rollout of electric charging stations along the highway network. Until now, these facilities were funded by the concessionaries. With a tax burden increasing, the government risks a drop in concession investments in deploying charging stations across France.
The government is trying to save money by every possible means for the 2027 budget. A situation that is bound to ripple through to the French people, across sectors.
Comparative Table
| Year | TEITLD Rate | Estimated Yield |
|---|---|---|
| 2024-2026 | 4.6% | €600 million |
| 2027 (projected) | 12.2% | €1.4 billion |
Key Takeaways
- The government wants to raise the TEITLD tax on highway and airport operators starting in 2027.
- The rate would rise from 4.6% to 12.2%, nearly triple the current level.
- The tax revenue could climb from €600 million to €1.4 billion per year.
- Concession companies could pass the tax increase on to motorists in tolls.
- The deployment of EV charging stations on the highways could slow down due to expected reduced investment.
- This measure is part of a broader effort to raise funds for the 2027 budget.
FAQ
Which tax does the government plan to increase?
The government plans to raise the rate of the tax on the operation of long-distance transport infrastructures (TEITLD).
What will be the new TEITLD rate?
The rate would rise from 4.6% to 12.2% starting in 2027, if the measure is enacted.
What are the amounts at stake for this tax?
Currently, the tax brings in about €600 million per year, and the new rate would target revenue of €1.4 billion.
Will motorists pay more?
It is likely that highway operators will seek to pass the tax increase on to toll rates, even if those rates are capped.
Will the tax increase affect EV charging stations?
Yes, a heavier tax could slow investments in deploying electric charging stations on the highway network.
