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