Members of the European Parliament voted to abolish VAT on essential products and freeze prices

This step is supported by LFI. In the voting that was almost held, the government abstained and the RN abstained.

In the first reading, the National Assembly approved, Thursday, November 20, the elimination of VAT on essential products, accompanied by a price freeze, on the initiative of La France insoumise and against the government’s advice, during the examination of the State budget. The decision passed narrowly, with 70 votes in favor and 62 votes against. He received support from the entire left wing, while the government camp opposed him. National Rally abstained.

For LFI, VAT is a tax “socially unfair”because low-income households spend a larger share of their income on these sectors than the richest households. The aim is to support purchasing power by lowering prices of basic goods, while preventing distributors from increasing their margins through price controls.

This debate was marked by heated exchanges between LFI and RN, the latter of which proposed similar measures but without price controls. “You refuse supervision, this means allowing multinational mass retail companies to increase their margins”launched LFI deputy Aurélien Le Coq. Jean-Philippe Tanguy (RN) answered: “We are not in the Soviet regime and price controls are illegal. You are not managing billions of referrals across the country”.

General budget rapporteur Philippe Juvin questioned the constitutionality of the measure. This adoption does not constitute implementation: the text still has to go through other stages of the parliamentary process. And, barring any surprises, the revenue side of the finance bill should be rejected in its entirety, if deputies manage to complete its hearing by midnight Sunday.