France Confirms New Taxes

September 10, 2012 Taxation in France

2 Euro coinPARIS – France will implement new taxes and will cut government spending in order to improve the budget by EUR 30 billion.

In a television interview on September 9th the President of France Francois Hollande outlined the government’s plan to increase taxation and confirmed the current aim of closing the country’s budget deficit within two years.

The President claimed that he has “…set the course and the rhythm” to help France address its “…high joblessness, falling competitiveness and serious deficits,” within two years.

Outlining the measures which will be implemented by the government in order to raise greater tax revenues, the President said that new taxes will be instated on companies to raise an extra EUR 10 billion.

Additional taxes will also be implemeted to raise a further EUR 10 billion from individuals, with a particular emphasis on collecting greater tax revenues from high-income households.

The President also said that the government would cuts its own spending by EUR 10 billion.

In order to address the country’s economic conditions the government will also introduce new policies aimed at reducing the national unemployment rate within 12 months time.

During the interview Francois Hollande rejected claims that the government has not reacted quickly enough to the current economic conditions and that it is not doing enough to address the budget deficit, saying “…I cannot do in four months what my predecessors could not do in five years or 10 years.”

Photo by Images_of_Money