2023-09-08 20:38:19
By John Timsit
Posted yesterday at 7:38 PM, Updated yesterday at 8:38 PM
The Ministry of Economy and Finance. laurencesoulez / stock.adobe.com
To mitigate the effects of rising prices on taxpayers, the government has decided to revalue the different tax brackets.
Good news for taxpayers. While inflation is expected to reach 5% in 2023 according to the latest forecasts from INSEE, the government intends to cushion this shock on the French tax sheet. According to information from echoes , confirmed at Figaro, Bercy, in full preparation of the 2024 finance bill, has decided to index the income tax scale to the evolution of price increases. In other words, the tranches will be revalued to take inflation into account.
If the level of this enhancement has yet to be fixed, it should be around 4.9%. If this increase remains less strong than the 5.4% last year, it is higher than previous readjustments, when inflation was lower. Concretely, the minimum tax threshold will no longer be set at 10,778 euros of annual income. This level will be increased according to the increase in prices. Same for the following levels.
Read alsoBudget 2024: “The curse of taxes”
For the executive, indexation will allow many French people, non-taxpayers, not to become taxable. And will prevent current tax payers from seeing their taxes increase. An important decision, while many households remain crushed by inflation. For the government, this is not a trivial decision: it is depriving itself of several billion in tax revenue next year. But while the executive had to deny all rumors relating to an increase in taxes, not acting would have been politically delicate, to say the least.
”
data-script=”
>
#income #tax #scale #indexed #inflation