Inflation: the government plans to index the income tax scale


The government plans to index the income tax scale to inflation in its budget for 2024 (AFP/Archives/Fred TANNEAU)

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 Les Echos 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.

According to Les Echos, the 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 over 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 within the scope of income tax due to salary increases linked to inflation.

© 2023 AFP

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