The government will increase the various income tax brackets by 4.8% in 2024, confirmed Tuesday, September 12, the Minister of the Economy and Finance, Bruno Le Maire, on LCI. The measure must avoid penalizing French people who have benefited from salary increases to cushion the shock of inflation.
Faced with inflation, which is expected to reach 4.9% in 2023, according to government forecasts, certain companies have agreed to salary increases, likely to bring them within the scope of employee income tax, which until now has not been paid enough to be subject to it.
By increasing the tax entry threshold by 4.8%, previously set at 10,777 euros of annual income, the government is avoiding “to see 320,000 employees fall into income tax”according to Mr. Le Maire.
6 billion euros less for the State
“It represents almost 6 billion euros of shortfall for the state budget, so it is a very important effort but an effort that goes to work, to all those who get up in the morning, work and allow us to have these economic results »declared the minister, who must present the draft budget for 2024 at the end of September.
The government had already raised the scale by 5.4% for the 2023 tax return on income for 2022. According to the brackets currently in force, the income of French people can be taxed at 0% (if they are less than 10,777 euros per year), 11% (between 10,778 and 24,478 euros of annual income) , 30% (between 27,479 and 78,570 euros), 41% (between 78,571 and 168,994 euros) or 45% (above 168,994 euros).
The World with AFP