ADP shares fall 4% as France proposes higher transport infrastructure tax
Investing.com -- Shares in Paris airport operator Aeroports de Paris fell as much as 4.4% on Tuesday before paring losses to trade down 1.1%, after the French government proposed sharply raising a tax on long-distance transport infrastructure.
The government proposed raising the tax on long-distance transport infrastructure, known as TEITLD, to as much as 12.2% from 4.6%, depending on operators’ profitability.
The measure is expected to raise about €800 million in additional annual revenue, taking total proceeds to around €1.4 billion from roughly €600 million currently. The higher tax is due to be included in the government’s 2027 budget proposal.
The measure is more directly relevant to airport operators than motorway companies because the government said motorway concessionaires would be prevented from passing the additional cost on to toll prices. Airports have greater scope to reflect higher costs in customer pricing.
The tax currently applies to companies generating more than €120 million in infrastructure revenue and with average profitability above 10%.
The government said the additional tax revenue would fund its "Ambition transports" programme for maintaining and modernising existing transport infrastructure.