In the new budget, the ruling socialists are reducing the threshold for a wealth tax, bringing in a 45% marginal tax rate for high earners, while those earning over EUR1 million a year will have to pay 75% of their taxable income to the treasury.
The new budget also has stated that tax breaks for business brought in by former president Sarkozy will be shelved, while large companies will be paying more capital gains tax.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
"This is a serious budget, it’s a leftist budget and it’s fighting budget," French finance minister Pierre Moscovici said.
The move is said to contribute EUR20 billion to the coffers, while spending cuts will account for another EUR10 billion.
The 2013 budget aims to reduce France’s budget deficit from 4.5% to 3%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
