Income tax to rise in France
People living and working in France might soon have a bit of a shock when opening a letter from the government as income tax is expected to rise for as many as 15 million taxpayers, according to some observers, although Prime Minister Jean-Marc Ayrault insists the actual number will be much lower.
For 50,000 higher earners, a new tax band for those earning more than €150,000 will also mean a rise in tax. The rises come despite much controversy regarding increases in taxes, even Economy Minister Pierre Moscovici commenting that he was aware of the public’s opinion that French people “had had enough”.
The move comes just 4 months before VAT levels are expected to rise from 19.6% to 20% and from 7% to 10%, although item currently holding 5.5% VAT will drop to 5%. Furthermore, earlier this month vice-President of the European Commission, Olli Rehn, sent a message of warning to France that the country’s tax rises have reached a “critical threshold” following President François Hollande’s proposal to levy a 75% tax on anyone earning over €1millon a year.
In mid July, however, tax officials in France said that British expats should not pay income tax on their UK state pensions or any other income from their properties back home in Britain.
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