French renters call for parity with farmers on tax

French rental association DLR has called on the French government to support the rental sector by maintaining the tax benefits for fuel used in off-road equipment.

Tax benefits on non-road fuel - known by the acronym GNR in France - are due to be phased out by 2030, but the French government has recently scrapped these plans for agricultural equipment such as tractors.

French farmers protesting over price pressures and taxes have blocked roads throughout the countrry, including the A6 close to Chilly-Mazarin, close to Paris, (Photo: Reuters/Abdul Saboore)

Faced by what DLR described as a “particularly challenging economic context”, the association has called on public authorities to adopt the same measures for construction equipment and “urgently preserve the fiscal measures associated with non-road diesel (GNR).”

DLR said the recent measures to help French farmers raised questions of “parity and justice” for the equipment rental sector.

“Non-road diesel is essential for the proper functioning of equipment and specialised vehicles used in our sectors, which play a crucial role in regional development and economic growth”, said DLR.

“Although our companies are committed to the energy transition, viable alternatives to fossil fuels are not yet available on a scale that would allow for complete replacement.”

The organisation said increases in energy costs and inflation were particularly difficult for the small and medium-sized companies that make up the majority of its members.

“The abolition of the GNR system, even gradually, will result in a significant increase in costs, threatening the competitiveness and survival of many sites”, said DLR.

“In a sector already affected by a severe crisis, maintaining the current taxation on GNR is crucial to ensure cost control and support economic vitality.”