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France PM - 7 days ago

Eurostat study: tax cuts are underway in France

30 November 2018Eurostat study: tax cuts are underway in France On 28 November 2018, Eurostat, the European Union’s statistical research body, published a study showing that the share of taxes and social contributions as a percentage of French GDP (48.4%) is the highest in Europe, but that household income tax, on the other hand, is lower than the average. The Government reiterates that it has already started cutting taxes and will continue to do so until the end of the five-year term. TweeterPartagerEnvoyer The heavy tax burden in France is mainly the result of high social contributions (which account for 18.8% of GDP, compared with 13.3% on average in the EU). Household income tax, on the other hand, is lower than the average (8.7% of GDP in France compared with 9.4% in the EU), while VAT is at exactly the same level (7.1%). The Government is taking action to lower household taxes and contributions. The aim is to achieve a drop of one percentage point of GDP by the end of the five-year term. Cuts have already started to be made: A 30% reduction in council tax on main residences for 80% of households this year (leading to an average saving of €200). The scrapping of social contributions for employees and the self-employed (more than €250 saved for those on the minimum wage). These cuts will continue with: Further cuts to council tax on main residences, until this has been completely phased out for 80% of households by 2020 (leading to an average saving of €600 per household in the long-term), and for all households by 2022. Exemptions from social contributions for overtime from September 2019 (€200 saved on average).

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