HASIn order to counter the economic and social crisis that is brewing, it is urgent to imagine original and innovative measures that protect the purchasing power of the middle and working classes. These have suffered in particular from soaring fuel prices since the start of the war in Ukraine. The current rebate at the pump of 18 cents per liter, put in place in an emergency, is not only very expensive – its cost is around 20 million euros per day – but also ineffective from a social point of view, since the world benefits, even the wealthiest households. What then of a reduction in VAT or price freezes, as proposed by various opposition parties?
While the government has just announced an evolution of the system by the end of the year, an effective, flexible and lasting solution could be put in place by relying on the banking network and new electronic payment methods. . The idea is simple: to fight against inflation – expected at 7% over one year – we recommend introducing an individual tax on fuel, modulated by the tax rate of each tax household, and applicable only to credit card payments.
Concretely, this system requires three steps. First, determine a grid of effective taxes (minimum, maximum and progressive amount) per liter of fuel, which can be adjusted to optimize the redistributive effect while setting the total amount of the desired tax. Second, assign each French tax household an individualized tax, indexed to its last tax rate, and reviewable each year. Finally, display the prices at the pump with the maximum tax, but automatically and immediately reimburse the difference between the maximum tax and the individualized tax, thanks to the electronic payment system, which also makes it possible to ensure complete confidentiality in the operation .
The refund amount would be communicated in real time to the buyer’s mobile phone. Payments in cash and by check would be excluded from such a mechanism. However, to avoid any breach of equality towards people without a bank card, it will be necessary to extend the right to a bank account – already guaranteed by the Banque de France – to a right to a free bank card.
Correct an “injustice”
At the end of June, the average price of SP95 fuel at the pump was 2.09 euros per litre. About half comes from taxes: 69 cents correspond to the consumption tax on energy products (TICPE), 35 cents to VAT, and 4 cents to the carbon tax. Identical for everyone, these three taxes are therefore socially regressive: low incomes devote a larger part of their budget to them.
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