France’s Prime Minister, Michel Barnier, has proposed several tax measures aimed at reducing the national debt as part of his draft budget, which include a temporary tax on large corporate profits and a new tax on share buybacks, according to Le Monde, a French daily.
The proposed exceptional contribution on the profits of major corporations would raise the tax rate from 25% to 33.5% for companies with annual profits above EUR 1 billion. Politico reports that the measure would impact around 300 companies and could bring to state coffers around EUR 8 billion a year.
The tax on share buybacks target companies that repurchase their own shares on the market, thereby reducing the overall share count and increasing their value. This new tax is expected to generate approximately EUR 200 million in revenue.
Additional budget measures involve expanding the current tax on polluting vehicles and adjusting the existing tax benefits for those renting furnished accommodations.
