France considers a permanent tax on the highest incomes
Kyiv • UNN
The French Minister of Economy announced plans to introduce a differentiated tax on the highest incomes in 2025, and later make it permanent. This is due to the need to reduce the budget deficit.
The French government is cutting the budget: after a historic reduction in 2025, the government plans to adjust the country's main financial document in 2026 as well. In this context, Economy Minister Eric Lombard said he hopes for a permanent tax on top incomes.
UNN reports with reference to Ouest-France and La Voix du Nord.
Details
The richest French will pay wealth tax on a permanent basis in the future. This was announced by French Economy Minister Eric Lombard, noting that it will initially be applied temporarily.
The head of the French Ministry of Finance sees the introduction of a differentiated tax on the highest incomes: it will be applied in 2025, and will later be "permanent" due to "concern for fairness", as the French government intends to work on optimizing taxes.
Reference
Lombard acknowledged that France is in a "state of emergency budget situation." The country's government has warned that the 2026 budget will have to be adjusted "after a historic budget cut in 2025." Lombard also announced "significant efforts" in preparing bills that will save at least 40 billion euros needed to meet deficit reduction targets.
Addition
This year, the French government plans to reach a deficit of 5.4 percent of GDP. The government recently lowered its growth forecast for the current year from 0.9 to 0.7 percent.
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