Despite sluggish economic growth, as part of a package of fiscal measures to meet its ambitious deficit reduction targets, the French Prime Minister has introduced an exceptional tax of 3% imposed on the annual income of the top earners in France. The government also plans a 1.2% increase in the social levies imposed on income from capital.

Other key fiscal measures outlined by the Prime Minister include the following plans:

  1. To increase the social levy imposed on interest, participation and savings
  2. To modify the taxation of capital gains derived from real estate and the taxation of overtime, and
  3. To increase the tax on tobacco (by 6%) and alcohol.