The left-wing executive wants to carry out a “national reflection in order to better tax the profits of multinationals established” in the capital.
The town hall of Paris, which criticizes the State for a financial withdrawal, recommends in a report published Tuesday a higher taxation of vacant housing and offices, and wealthy tourists, which would require legislative intervention. While the City of Paris estimates the cost to it of the health crisis at 1.2 billion euros, between loss of revenue and additional expenses, “the current system of local government taxation is at the end of its tether, and needs to be urgently reformed“, underline Nicolas Bonnet-Oulaldj, leader of the Parisian communist elected officials, and Paul Simondon, PS deputy to the finances of the mayor Anne Hidalgo, in their proposals.
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Among these, three are incentives for housing: the launch of an additional tax on vacant offices, the multiplication “at least by four” of the tax on vacant housing or the removal of the cap on the increase in housing tax on second homes in tight areas. Others also target the wealthiest taxpayers and tourists: the removal of the ceiling from the tourist tax on palaces and luxury hotels, and the introduction of progressiveness for transfer duties for consideration (DMTO), paid with each real estate transaction, “by a higher rate for luxury goods”.
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The left-wing executive led by Anne Hidalgo, who criticizes the government for a lack of financial support since the health crisis, also advocates a “national reflection in order to better tax the profits of multinationals based in Paris” and of “make the digital economy and delivery trade contribute more”, through the creation of a tax on delivery fleets or products delivered. If the loss of fiscal autonomy is the subject of a “unanimous observation on the part of elected officials, whatever their political side” in France, and if this report “must apply to all”the capital experienced a “impact of the crisis amplified” and there is a “Parisian specificity on tourist taxes and second homes”justifies Nicolas Bonnet-Oulaldj to AFP.
For Paul Simondon, these “incentive tax tools” can “be shared very widely by elected officials” from all sides, including right-wing mayors “in cities where the housing situation is very tight”. For the finance assistant, some measures presented are “applicable from 2023” if a parliamentary majority emerges on the subject. “The DMTOs, the tourist tax, it costs nothing to the State, nor to the working classes”defends Nicolas Bonnet-Oulaldj for whom these are measures of “social justice”.
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