Despite the absence of indexation to inflation, the Ministry of Public Accounts reassures taxpayers: no immediate increase in income tax is planned at the start of 2025. However, uncertainties remain in the absence of a budget adopted for the coming year.
Temporary stabilization of taxes
The Ministry of Public Accounts has confirmed that the French will not see their income tax increase on January 1, 2025even if the scale has not been indexed to inflation. This announcement aims to allay the concerns of taxpayers, particularly at the end of the year marked by budgetary uncertainties.
Éric Lombard, new Minister of the Economy, wanted to be reassuring in an interview with La Tribune Sunday. « We will have a budget which will include an indexation of the scale “, he affirmed, while guaranteeing that taxpayers who are not taxable today will remain so. The initial 2025 draft budget, presented before the change of government, provided for an increase in income tax brackets of 2%, a system aimed at protecting purchasing power in the face of inflation. This measure, although advantageous for households, represented an estimated cost of 3.7 billion euros for public finances.
Despite these guarantees, potential consequences linked to the absence of a budget are looming. Without indexation, around 380,000 new households could become taxable, and millions more could see their tax burden increase. This situation results from the non-adoption of a 2025 budget, following the censorship of the former government project by Parliament.
Gray areas on the horizon
New Prime Minister François Bayrou hopes to reach a budget agreement by mid-February, although he acknowledges the uncertainty surrounding that deadline. In the meantime, a recently passed “special law” allows the state to continue operating. In particular, it authorizes the levying of taxes and borrowing to finance essential public expenditure. “ It contains everything the State needs to ensure its essential functions at the beginning of 2025, but nothing more », Explained Jean-François Husson, general rapporteur of the finance committee in the Senate.
-To maintain the continuity of public services, the government published a decree renewing the spending authorizations provided for in the initial finance law of 2024. But this temporary solution cannot replace a real budget, essential to avoid heavier repercussions. on taxpayers in the months to come.
Faced with a complex situation, the French can breathe temporarily, but the specter of a tax increase remains if no lasting solution is found quickly. The challenge for the executive is now to break the parliamentary deadlock to restore economic and fiscal stability.
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