France to reduce exceptional corporate tax surcharge in 2027 budget, Lecornu says

Tax cut announcement for 2027

French Prime Minister Sébastien Lecornu announced on 9 September 2026 that France will reduce the exceptional corporate tax surcharge on very large companies in the upcoming 2027 budget. The pledge was delivered in a letter addressed to business leaders and made public through French news outlets. Rather than abolishing the tax entirely, the government chose a gradual reduction to provide fiscal predictability for domestic and foreign enterprises. Lecornu argued that rolling over the tax at its current rate for a third consecutive year would send a damaging signal to international investors. The letter also outlined forthcoming provisions to ease employee buyouts under the Papin pact and to review specific corporate tax deductions.

It responded to an exceptional situation: what is exceptional must remain exceptional.

Budgetary pressures and revenue targets

The French government introduced the exceptional surcharge on large company profits in 2025 as a one-year emergency levy to narrow the budget deficit. The tax was subsequently renewed for 2026, with revenue projections reaching 7.3 billion euros for the calendar year. Lecornu noted that ongoing fiscal constraints prevent the administration from removing the levy altogether in 2027. State expenditures have increased due to targeted subsidies designed to cushion fuel price spikes caused by the prolonged Middle East conflict. The government also allocated more than 1 billion euros in emergency aid to French farmers grappling with severe heatwaves and drought conditions.

Business lobbying and executive debate

Corporate executives and employer organizations had intensified their campaign against the surcharge in the weeks leading up to the announcement. During the annual business federation gathering in late August 2026, business leader Patrick Martin warned ministers against treating companies as an endless source of revenue.

We, entrepreneurs, refuse to be treated as cash cows on the unfounded pretext that we would endure anything and that our electoral weight would be minor.

TotalEnergies chief executive Patrick Pouyanné had separately called for an outright repeal of the levy, warning that the company could scrap fuel price caps at its service stations if a new windfall tax on energy profits were enacted. Economy Minister Roland Lescure had similarly advocated inside the cabinet for a rate reduction to prevent capital flight. Lecornu stated that France requires economic growth generated through private capital, enterprise, and job creation, framing the decision as a defense of the supply-side policies initiated under President Emmanuel Macron.

Political pushback from left-wing parties

Opposition figures on the political left swiftly criticized the planned tax cut, describing it as an unwarranted concession to corporate interests in the middle of a fiscal crisis. Manuel Bompard, coordinator of La France Insoumise, accused the prime minister of prioritizing multinational corporations while preparing to shift budget cuts onto retirees and patients. Socialist Party leader Olivier Faure, who is running in the social-democratic primary, argued that the government prefers cutting social protection and pensions over retaining taxes on corporate profits. Opposition lawmakers stated that lowering corporate obligations deepens the financial strain on public services. The government has not yet detailed the exact rate reduction or the complete statutory text for the 2027 finance bill.