The government plans to index the income tax scale to inflation in its budget for 2024, a measure to avoid increasing taxes despite salary increases linked to price increases, according to the newspaper The echoes SATURDAY.
Questioned by AFP, the Ministry of the Economy and Finance did not wish to comment on this measure which should be included in the next finance bill for 2024. This will be presented on September 27 in Council of Ministers.
Five to six billion euros in additional tax revenue
According to The echoesthe level of inflation has yet to be fixed but “should be around 4.9%”, while the National Institute of Statistics (Insee) forecasts inflation at 5% on average annually for the year 2023.
The newspaper estimates this measure at between 5 and 6 billion euros in additional tax revenue which will not be collected, due to the reassessment of the tax bracket thresholds. The government had already increased the scale by 5.4% in 2023, preventing the poorest French people from falling into the scope of income tax due to salary increases linked to inflation.