PARIS: France's Constitutional Council on Tuesday struck down the carbon tax bill proposed by President Nicolas Sarkozy.
The tax on carbon-emitting products, which aimed to encourage consumers to use less fuel, was due to take effect on January 1, 2010.
However, the Constitutional Council, a body that ensures the constitutionality of French laws, argued that the exemptions included in the tax run counter to the aim of fighting climate change since only half of the greenhouse gas emitted would be subject to the carbon tax.
Under the bill, some large industrial polluters including refineries, cement producers and cokeries, as well as public transportation, would be exempted from the tax.
Around 93 percent of carbon-dioxide emission from industrial resources other than fuels will not be levied under the bill, the council said in a statement.
The tax, which would charge 17 euros (US$25) per ton of carbon dioxide emissions from households and enterprises, will consequently lead to a rise in fuel prices for automobiles, heating facilities and factories.
Prime Minister Francois Fillon said the government would propose a new plan on January 20 that will take into account of the ruling of the council.