France Replaces Wealth Tax with Luxury Tax

October 9, 2017 Taxation in Japan

Tax on luxury yachtsPARIS – France will soon tax luxury goods and vehicles, as taxing them will not be detrimental to the economy.

Over the weekend the ruling political party of France indicated that in the near future it will propose the implementation of a tax on non-productive luxury items, such as gold, luxury yachts, and supercars.

The leading party campaigned on a promise of removing the long-standing wealth tax, which is levied on all French taxpayers with assets exceeding EUR 1.3 million in value.

The party leader, Emmanuel Macron, has come to be criticised as a “president of the rich”.

The party has now said that while the wealth tax will be dropped, it will be replaced with the tax on luxury items.

It is expected that the new tax will result in greater levels of tax revenues for the government, without applying any downward pressure to the productive elements of the economy.

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