Manoeuvre 2025 in France: cuts and higher taxes without patrimonial assets
Exemptions for those with higher incomes will be temporarily reduced, while the 440 largest companies will pay extraordinary taxes for two years
3' min read
3' min read
An 'improvable' budget. Because it was written in 15 days. Michel Barnier, the French Prime Minister, opens the door to contributions from Parliament, but one aspect of the budget will remain unalterable: the rigour of the manoeuvre, which exceeds 60 billion, touches 2% of GDP and is reminiscent of the equally rigorous one of 1983.
"Let's not raise taxes please"
.The budget approved by the council of ministers, and sent to the chambers, includes cuts of 41.3 billion and higher taxes of 19.3 billion. 'We have no other choice,' Economy Minister Antoine Armand and Public Accounts Minister Laurent Saint-Martin said immediately in an interview with Figaro. "We are not raising taxes for pleasure, but out of a sense of responsibility."
19.3 billion more revenue
The manoeuvre is demanding. There are at least 12 measures that adjust taxes. Individuals will have to contribute 5.7 billion to the increased revenue. A 'temporary differential contribution on very high incomes', lasting three years, will be introduced for a total of two billion.
All those with a taxable income of EUR 250,000 (for a single person without children) or EUR 500,000 (for a couple) will have to pay a minimum tax of 20 per cent of income, a measure that limits deductions and allowances.
Some exemptions on rental income will be reduced (the Bnb tax) and all tax brackets will be indexed to avoid loss of purchasing power. Other tax increases affect all consumers: electricity taxes, for example, are expected to generate revenue of three billion. The malus tax on the most polluting cars and that on airline tickets will increase.
