French parliament rejects proposed cap on retirees' tax deduction
On Thursday, the National Assembly voted 116-30 to eliminate the article that would have lowered the ceiling of the 10% pension tax deduction, overruling the government's proposal.
During the public session on the first part of the 2027 finance bill, deputies voted 116-30 to scrap the provision that would have capped the 10% tax deduction on retirement pensions, removing article 3 from the draft law. The government had promoted the cap as a major source of savings, but parliament rejected it. A separate decree shifted resources away from renewable-energy projects, cancelling €406 million of commitment authorisations and €416 million of payment credits for the 2026 budget to fund agricultural and fuel aid measures.
Minister Annie Genevard outlined an agricultural recovery plan that includes building upgrades, water-management improvements, and a €2 billion zero-interest loan scheme for farmers. Additionally, deputies approved France's €30.9 billion contribution to the EU budget, with the vote passing 111-93 despite opposition from LFI and RN. The budget debate will continue through next week, with a final vote scheduled for 20 October.
Why it matters
The decision reshapes tax relief for retirees and redirects public funds toward agriculture and EU commitments, affecting households and fiscal priorities.
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