France's 2026 Budget Debates Spotlight Zucman Tax and Behavioral Levies on Alcohol and Tobacco

As budget debates continue in the French National Assembly for 2026, key discussions focus on the proposed Zucman tax and behavioral taxes targeting alcohol and tobacco. The Zucman tax, championed by the Socialist Party, faces stiff opposition. Laurent Jacobelli, Moselle deputy and National Rally spokesperson, dismissed the tax as nonsensical and predicted it would not be approved, suggesting the budget might ultimately pass through executive ordinances.

Meanwhile, amendments concerning behavioral taxation are advancing more tangibly. The Social Affairs Committee adopted measures to remove the 1.75% cap on alcohol tax increases linked to inflation, aiming to address addiction concerns raised by health professionals. Hadrien Clouet from La France Insoumise argued the current law limits effective tax adjustments amid inflationary pressures, while committee president Frédéric Valletoux highlighted that addiction responsibility extends beyond consumers. However, Thibault Bazin, the budget's general rapporteur, noted the expected inflation for 2026 around 1.3% lessens immediate impact, and such taxes overlook issues like minors' exposure and parallel markets. Other recent amendments expanded the tax on premixed alcoholic beverages, sparking debate between advocates who see price rises as deterrents and opponents, including Rassemblement National, who view behavioral taxes as ineffective and harmful to purchasing power.

These debates unfold amid broader budget challenges, with concerns over public spending transparency, as some experts highlight growing complexities like foundation-based tax favoritism, though this remains a peripheral issue to current fiscal discussions. The Assembly continues its examination of behavioral tax amendments as the week progresses.