💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

France not planning household tax hikes, sources say other taxes possible

Published 08/23/2023, 10:51 AM
Updated 08/23/2023, 10:57 AM
© Reuters. French Prime Minister Elisabeth Borne leaves following the weekly cabinet meeting, after a government reshuffle, at the Elysee Palace in Paris, France, July 21, 2023. REUTERS/Gonzalo Fuentes/File Photo

By Elizabeth Pineau

PARIS (Reuters) -The French government has no plans to make households pay more taxes, Prime Minister Elisabeth Borne said on Wednesday, but other tax rises are under consideration, two government sources said as ministers worked on finalising the draft 2024 budget.

France is under pressure to bring finances into balance after Fitch in April cut the country's rating to AA- over concerns about potential political paralysis and social unrest following an unpopular pension reform.

"There is no question of increasing household taxes. We need to continue to lower taxes, while paying attention to the middle classes' spending power," Borne told France Bleu radio, also denying media reports of tax hikes on alcohol.

But as the government looks to wrap up its 2024 budget plans, one option is a possible tax on motorway operators, the two government sources said, confirming comments over the past months by Transport Minister Clement Beaune.

© Reuters. French Prime Minister Elisabeth Borne leaves following the weekly cabinet meeting, after a government reshuffle, at the Elysee Palace in Paris, France, July 21, 2023. REUTERS/Gonzalo Fuentes/File Photo

Beaune has said that would not increase toll prices.

Also under consideration is an increase of existing taxes on plane tickets, which would focus particularly on high-end seats, the sources said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.