The move has come in spite of the court having recently validated its government plans to impose an exceptional contribution on wealth (ISF) in 2012.
It was on 9 August 2012 that the court had validated exceptional levy on wealth, payable before 15 November 2012, during its examination of the government’s July 2012 supplementary finance bill.
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Further, in its ruling, the court had insisted that the contribution is valid, arguing that the levy is only applicable for 2012 and is intended to compensate for the reduced ISF rates introduced by the previous government.
The court also added that if the government had planned to both increase the tax rates and impose an exceptional contribution this year, then the contribution would have been deemed confiscatory and therefore unconstitutional.
The exceptional contribution on wealth was proposed by the government as an interim measure, prior to its planned structural reform of the solidarity tax on wealth in 2013, overturning the 2011 reform implemented by Sarkozy’s government.
Meanwhile, adopted within the framework of the country’s 2011 supplementary finance bill, the 2011 reform simplified the ISF tax, providing for just two tax brackets: a 0.25% tax rate imposed on individuals with net taxable wealth in excess of EUR1.3 million and a 0.5% tax rate levied on individuals with net taxable assets above EUR3 million.
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By GlobalDataEarlier, the entry threshold at which wealth tax was applied was EUR800,000, with the rates varying between 0.55% and 1.8%.
The government will begin its debate on ISF reform in September 2012, within the framework of the 2013 finance bill.
