In 2023, France's tax expenditure on fossil fuels for transportation stood at 0.21% of GDP. The forecasted data indicates a gradual increase from 2024 through 2028. The year-on-year growth rate stays steady at approximately 4.55% until 2027, with a slight acceleration to 8% in 2028. Over the five-year forecast period from 2023 to 2028, the compound annual growth rate (CAGR) is anticipated to be around 5.23%, signifying a consistent upward trend.
Future trends to watch for include potential policy shifts towards greener alternatives and sustainable energy. This may impact tax expenditures if the government enacts reforms aimed at reducing fossil fuel dependency, thus altering these forecasts significantly.
