Vinci Protests French Transportation Infrastructure Tax Proposal

   By Mauro Orru 
 

Vinci said it would resort to all available avenues of appeal against a proposed tax on certain types of long-distance transportation infrastructure in France, the latest company to warn of the potential tax impact on its financial results.

The French construction and infrastructure company, which operates a number of airports and highways, said late Wednesday that it would have booked a charge to the tune of 260 million euros ($273.1 million) in 2022 if the proposed tax had been in force at the time.

The draft finance law was presented to France's Council of Ministers on Wednesday. The bill must be submitted to the National Assembly--the lower house of parliament--by early October for lawmakers to review and vote on the law that would become effective next year.

"Vinci takes issue with this draft, which is contrary both to the spirit and to the letter of concession contracts, particularly those signed between the state as grantor and the motorway concession companies, and it intends to use all available avenues of appeal," the company said.

Aeroports de Paris said it would have suffered a hit of roughly EUR100 million if the 4.6% tax had been applied to last year's revenue.

The airport operator said it would resort to higher tariffs next year to offset around half of the impact from the tax if the bill were to go through.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 28, 2023 02:17 ET (06:17 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.