Minister of Public Accounts Gérald Darmanin says the state has raised an additional € 2 billion in income taxes this year.
The introduction of tax withholding tax has allowed the state to collect an additional € 2 billion this year, said Wednesday 25th September 2019 the Minister of Public Accounts, Gerald Darmanin.
“We recovered 1 billion more than we had planned, that is to say, 2 billion euros additional,” said the minister on France Inter, a sum that corresponds to “0.1 point of gross domestic product is a lot of money. ”
— Gérald DARMANIN (@GDarmanin) 25 September 2019
Without increasing the tax of the French, we made a reform that brings more money into the coffers of the state, “he added.
Fraud or administrative phobia
The introduction this year of the withholding tax of the income tax allowed to “make pay the people who (previously) would have had to pay the tax but who defrauded or who were phobic administrative,” said Gérald Darmanin.
In total, the income tax, which is paid by 16.8 million tax households out of a total of 38.3 million, annually brings about 75 billion euros to the state.
The finance bill for 2020, which will be presented Friday in the Council of Ministers, provides for a decrease of 5 billion euros in this tax, thanks to a reduction of 3 points in the tax rate of the first tranche, which concerns 12 million homes.
This measure was announced by the President of the Republic in the spring, in response to the movement of “yellow vests”, a move that has “accelerated” the tax cuts envisaged by the government, according to Gerald Darmanin.
No increase of the carbon tax
In addition, the minister confirmed that the carbon tax, one of the triggers of the “yellow vests” crisis, would not increase next year or the following years.
“There will not be by the end of the five-year increase by taxation of the price of gasoline and diesel,” said Gerald Darmanin.
However, the government plans to reduce a tax niche that some companies benefit from for non-road diesel.
In addition, it plans to increase the taxation of 2 euros per litre on diesel fuel paid by the road freight transport sector to finance infrastructure. Discussions are underway with the road carriers.