French car tax to spur green upheaval

  • 02/07/2008

  • Financial Times (London)

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. From the start of the year, the government has introduced bonuses for consumers who buy environmentally friendly vehicles and turn in cars more than 15 years old. These bonuses range from