Budget: MPs vote to double the Gafam tax targeting tech giants

Members of Parliament voted on Tuesday, October 28, to double the rate of the Gafam tax , which targets large tech companies, from 3% to 6%, despite opposition from the government, which is concerned about possible reprisals from the Trump administration.

In committee, Macron's elected representatives had proposed raising the rate from 3% to 15%, before changing their minds during the session and supporting a compromise of 6%. The amendment by MP Jean-René Cazeneuve (Renaissance) thus received 296 votes in favor, 58 against.

"Digital giants must pay a tax in France that is proportional to their activity. They have used a number of legal tricks to ensure that their turnover and profitability are not known," the Macronist MP denounced in the chamber to justify the tax increase.

But "I'm not here to reopen a trade war between France and the United States," he added, ultimately opting for a more moderate rate of 6%. This reversal sparked outrage among left-wing MPs, who denounced it as a retreat in the face of American pressure.

"I am extremely embarrassed (...) this means that we can no longer legislate on the Gafam issue under Trump's threats," lashed out the leader of the Green Party deputies, Cyrielle Chatelain.

Before the vote, Economy Minister Roland Lescure called on MPs to exercise restraint: "If we introduce a disproportionate tax, we will face disproportionate reprisals." "Be careful, I urge you," the minister even implored.

In the process, Les Républicains announced that they would not vote for any proposal that would increase this tax, in order to "preserve our agricultural, wine, and spirits sectors," which would be the first to be affected in the event of reprisals, according to MP Valérie Bazin-Malgras. For Socialist MP Philippe Brun, "two camps are opposed" in the hemicycle, between those "who believe that we must always bend the knee to the American giant" and those who "assert themselves" and "do not accept that a country imposes its own law."

Several deputies from the left and the National Rally also denounced the weakness of the European Union in the standoff with Donald Trump, who imposed customs duties of 15% on certain French products during the summer.