Sarkozy promises to abolish wealth tax By TII News Service
Nov 24, 2010 , New Delhi
THE French
Government headed by President Nicolas Sarkozy has promised to abolish wealth
tax and the controversial tax shield mechanism in the supplementary Spring 2011
Finance bill. The unpopular tax shield (bouclier fiscal) currently limits direct
taxes in France to 50 per cent of income and is viewed as a symbol of injustice.
The supplementary bill is also expected to introduce much needed tax reforms to
harmonise the country’s tax system with Germany, its major trade partner. This
is being done to stall the exodus of capital, jobs and industry from France to
neighbouring countries.
The government is also planning to introduce a
new tax to be levied on income and capital gains from assets. However, the
President has assured the nation that there would be no increases in the rate of
income tax or corporate tax as the level of taxation in France was already
higher than in neighbouring countries.
