French President Emmanuel Macron was holding an emergency meeting on security later Sunday with his prime minister and interior minister.
Government spokesman Benjamin Griveaux had indicated the Macron administration was considering imposing a state of emergency.
"The violence is increasing at an exponential rate", said Claude, a resident in the affluent 16th district. He refused to answer any questions from journalists about the situation in Paris.
Authorities were caught off-guard by the escalation in violence after two weeks of nationwide unrest against fuel taxes and high living costs, known as the "yellow vest" movement after the fluorescent jackets worn by the protesters. Singapore's Ministry of Foreign Affairs has advised Singaporeans travelling to France or those in the country to stay away from large gatherings.
Senior members of Macron's La Republique En Marche party said the government could also increase the minimum wage from January along with other measures to deliver a quick boost low-income households, although the details remained unclear.
In Paris on Sunday as groups of workers set about cleaning up the mess from the previous day, the scale of the destruction became clear.
Police said 23 police officers were among the injured and 378 of the arrested have been put in police custody.
"No tax is worth putting in danger the unity of the nation", Philippe said as he announced the suspension.
The protesters who are angry over rising taxes and the high cost of living have sprayed graffiti on the Arc de Triomphe, torched at least one vehicle, and broke through the metal fence of the Tuileries gardens.
Mr Macron paid tribute to the Unknown Soldier from the First World War whose tomb is under the monument.
The protests escalated into discontent with high taxes and cost of living, as well as in the economic policy of the President of Macron. Police later fired tear gas in the area.
Suspending the carbon tax will mean that billions of euros will have to be saved elsewhere, possibly in the form of spending cuts that could affect the social services that many yellow-vest protesters also cherish.
"It's a small victory because he is finally backing down", protester David Roig, a 29-year old Paris taxi driver told the Wall Street Journal.
Protesters then led police on cat-and-mouse chases through other parts of the capital, setting cars and construction equipment alight and smashing windows.
Paris Mayor Anne Hidalgo tweeted her "indignation" and "deep sadness" at the confrontations, saying that violence is "not acceptable".
The protests began last month with motorists upset over the fuel tax hike, but have grown to encompass a range of complaints, with protesters claiming that Mr Macron's government does not care about the problems of ordinary people.
Ahead of European Parliament elections next May, support for the far-right under Marine Le Pen and the far-left of Jean-Luc Melenchon has been rising.
Some 136,000 demonstrators, a lot of them peaceful, were counted across the country on Saturday, the interior ministry said Sunday.
Along the Champs Elysees, peaceful demonstrators held up a slogan reading, "Macron, stop treating us like idiots!" Access to the avenue was closed to cars and strictly monitored by police with identity checks and bag inspections.
It quickly grew into wider protests against Macron, whom many accuse of representing a Parisian elite with little understanding of their monthly struggle to make ends meet.
"Our purchasing power is severely diminishing every day".
The president says the taxes are needed to combat climate change. "The state is asking us to tighten our belts, but they, on the contrary, live totally above all standards with our money".