Paris downplays fears over tax changes
Print Edition
The French government yesterday sought to downplay fears that workers will be left out of pocket as the country transitions to a pay-as-you-earn tax system that could fan the flames of a revolt over spending power.
After years of delays, France on January 1 ditched a system whereby residents file income tax returns based on the previous year鈥檚 earnings, replacing it with a system where the state deducts the taxes directly from people鈥檚 salaries or pensions each month.
Opinion polls show the French broadly supporting the change but the shift presents risks for President Emmanuel Macron, not least that workers may feel poorer when they receive their new net pay 鈥 even if they will no longer have to save up to pay tax three times a year.
Any glitches in the new system which could see taxpayers pay more than they bargained for could further infuriate the 鈥測ellow vest鈥 anti-government protesters who have been demonstrating around the country since mid-November over Macron鈥檚 fiscal policies.
Visiting a tax query call center, Budget Minister Gerald Darmanin attempted to assure the French the change would be painless.
鈥淭axation at source is like the mobile phone. In a month鈥檚 time we鈥檒l be wondering how we ever managed without it,鈥 he said, calling it a 鈥渂ig step forward for the French.鈥
He attempted to silence the doomsayers, noting that so far there was no sign of the much-prophesied chaos and that the number of queries received by the call center were on a par with an average month.
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