2023-09-12 07:53:00
The Minister of the Economy and Finance announced a 4.8% increase in the various income tax brackets in 2024.
By LL with AFP
© LUDOVIC MARIN / AFP
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LThe government will increase the various income tax brackets by 4.8% in 2024, to avoid penalizing the French who have benefited from salary increases to cushion the shock of inflation, the government announced on Tuesday. Minister of Economy and Finance Bruno Le Maire.
“I confirm to you that we will index the income tax scale to inflation, that is to say 4.8%,” he said on the LCI channel.
Faced with inflation, which is expected to reach 4.9% in 2023 according to government forecasts, certain companies have agreed to salary increases, likely to bring employees into the scope of income tax which has so far not been sufficient. paid to be subject to it. By increasing the tax entry threshold by 4.8%, hitherto set at 10,777 euros of annual income, the government is avoiding “seeing 320,000 employees fall into income tax”, according to Bruno The mayor.
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“It represents almost 6 billion euros of shortfall for the state budget, so it is a very important effort but an effort that goes to work, to all those who get up in the morning, work and allow us to have these economic results,” insisted the minister, who must present the draft budget for 2024 at the end of September.
The government had already increased the scale of 5.4% for the 2023 tax return on 2022 income. According to the brackets currently in force, the income of French people can be taxed at 0% (if they are less than 10 777 euros annually), 11% (between 10,778 and 27,478 euros of annual income), 30% (between 27,479 and 78,570 euros), 41% (between 78,571 and 168,994 euros) or 45% (above of 168,994 euros).
A “taxation of surplus profits” of motorway companies
He also confirmed, without going into details, that the 2024 budget would include a “tax on excess profits” made by motorway companies.
Failing to completely eliminate in 2024 the second half of the CVAE, a production tax weighing on businesses, Bruno Le Maire confirmed that one billion (of the remaining four) would be eliminated next year. He also announced the elimination of the minimum contribution of 63 euros to the CVAE which weighs on some 300,000 companies, mainly VSEs and SMEs.
Bruno Le Maire also insisted on the fact that “not one euro” from the gradual elimination of the tax loophole on GNR (non-road diesel) used by farmers and public works industrialists “would go to the State “. These sums will be reinvested in supporting “ecological transformation” for agriculture, and in the purchase of electric machinery, particularly for construction.READ ALSO France, world champion of the most complex pay slip
He also announced an agreement with these two sectors to “together finance a biofuel sector”. The tax advantage will be reduced gradually, insisted Bruno Le Maire, by 2.8 cents per liter each year from 2024 to 2030.
The minister finally clarified that negotiations between manufacturers and distributors should end on January 15, instead of March, in 2024, and wondered “if more regular negotiations would not be necessary”. He also announced that he would contact the Minister of Agriculture Marc Fesneau with the observatory of price formation and margins to ensure that the margins of agricultural producers are well protected.
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