2024 Income Tax Declaration Campaign: Tax Scale Indexation to Inflation Explained

2023-09-09 16:50:17
PHILIPPE HUGUEN via AFP The 2022 income tax declaration campaign started online this Thursday, April 7

PHILIPPE HUGUEN via AFP

This measure envisaged by Bercy is good news for taxpayers in 2024. (illustrative photo)

ECONOMY – The government plans to index the income tax scale to inflation in its budget for 2024, a measure to avoid increasing taxes despite salary increases linked to price increases, report The echoes et Le Figaro Friday September 8.

According to The echoesthe level of inflation remains to be fixed but “should be around 4.9%”while the National Institute of Statistics (Insee) forecasts inflation at 5% on average annually for the year 2023. Indexing the tax thresholds to inflation allows taxpayers not to change brackets and therefore, not to pay more taxes.

The newspaper estimates this measure at between 5 and 6 billion euros in additional tax revenue which will not be collected.

“Raising taxes is out of the question”

Questioned by AFP, the Ministry of the Economy and Finance did not wish to comment on this measure which should be included in the next finance bill for 2024.

This will be presented on September 27 to the Council of Ministers, but the watchword has already been given: savings. Nevertheless, the government is trying to reassure households. ” I see a lot of rumors that we want to increase taxes, there is no question of that. On the contrary, we want to continue to lower them while obviously being attentive to the purchasing power of the middle classes,” assured Prime Minister Élisabeth Borne on August 23 on France Bleu.

The government had already increased the scale by 5.4% in 2023, preventing the poorest French people from falling within the scope of income tax due to salary increases linked to inflation.

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