Jean Castex announces a new gesture in favor of household purchasing power, dented by inflation

This time, no solemn announcement on the “8 p.m.” television news. No question of giving the impression of taking out the checkbook so close to the elections. It was in response to a question from a deputy that the Prime Minister, Jean Castex, announced on Tuesday January 25 a new gesture of support for the purchasing power of the French, undermined by the rise in fuel prices. and by those of foodstuffs since the summer of 2021. This is the fourth, in less than six months.

Two days away from a mobilization day “on wages and employment”, organized on Thursday 27 January by the trade unions, the executive chose a more targeted and less massive measure than the previous ones, but having the advantage of being quick and not going through the law.

Bercy will reassess by 10% the scale used by households who use their vehicle to work, and who deduct part of their transport costs from their taxes. This enhanced “mileage scale” will target “those of our fellow citizens who drive a lot, that is to say, those for whom the vehicle is ultimately a means of work or job search »explained the Prime Minister, citing the example of “nurses” or some “home helpers” In a rural area. That is around 2.5 million households, which will be able to reduce their tax by an average of 150 euros for the year 2021.

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It will also serve as a reference to revalue ” the mileage allowances paid directly by employers to their employees who use their personal vehicle »added Jean Castex, who praised an effect “quick and direct”. The cost to public finances is estimated at 400 million euros, it is said at Bercy, a figure still “rather imprecise” because there is “not all of the data”.

“A collective effort of more than 15 billion euros”

Targeted, the measure only benefits motorists who pay taxes. “Those who do not pay have already received the energy check and the inflation allowance”estimates the executive, with reference to the measures to support purchasing power decided in the fall of 2021. This new gesture is aimed primarily at “households whose income is between the fourth and seventh deciles [entre 1 737 euros et 2 164 euros mensuels, selon l’Insee]some of whom did not receive the inflation allowance”specifies Bercy.

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A political choice which did not fail to make the left react. “You are not talking to non-taxable French people, all those who earn less than 1,295 euros net per month! », deplored, in session, the deputy (Socialist Party, PS) of Tarn-et-Garonne Valérie Rabault, quantifying the population excluded from the measure at 14.5 million people.

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