The complete abolition of the housing tax for the 20% of the richest households will take place in 2023, and not in 2022 as announced until then by the government, confirmed Thursday the Minister of Finance Bruno Le Maire.
The housing tax “will be completely abolished in 2023, and it will be enshrined in law,” said Mr. Le Maire on France Info. “We are doing things gradually,” he said.
In his general policy speech, Prime Minister Edouard Philippe recalled Wednesday that the housing tax on main residences would be abolished for all French people, but with a new timetable. For 80% of “the most modest French, their tax will be completely abolished in 2020. For the remaining 20%, the abolition will take place over three years,” said the Prime Minister.
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The government, after having promised for a time to abolish the housing tax for all French people “at the latest by 2021”, had been referring for several months as the deadline to the end of the five-year term. But the constraints weighing on public finances, due in particular to the measures announced in the face of the yellow vests movement, have forced the executive to review its copy, to avoid a surge in public debt.
“What would we not have said if we had rushed to do it quickly, with an impact on public finances which would have been a very strong impact,” Bruno Le Maire explained Thursday. “The commitment will appear in the finance bill,” the minister also insisted, saying he saw it as a guarantee for the maintenance of this measure in the event of a change in the presidential majority in 2022.
To abandon the total abolition of the housing tax, it would be necessary to “defeat a law”. “It’s never very easy, you know, to reverse a tax cut that was granted to the French,” he said.