TO bridge it budget deficit, France has decided to levy higher tax on
its top income earners although as a temporary measure.
Prime
Minister Francois Fillon has said that an exceptional contribution of 3% would
be imposed on wealthy individuals having annual income from both work and
capital in excess of EUR 500,000. The government also plans a 1.2% increase in
the social levies imposed on income from capital.It is reported that the new
levy may generate about EUR 200 mn additional revenue next year and is likely to
be abolished once the country’s deficit returns to 3% of gross domestic product
(GDP). France aims to reduce its public deficit to 5.7% of GDP this year, to
4.5% in 2012 and to 3% in 2013.
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