PARIS, 3rd October, 2024 (WAM) -- France's plans for a new wealth tax to help cut the country's spiralling deficit will affect less than 1 percent of households, Reuters reported on Thursday, quoting Budget Minister Laurent Saint-Martin.
The move is part of efforts by the euro zone's second-biggest economy to balance the raising of taxes without scaring off businesses and wealthy entrepreneurs who create much-needed revenue.
"We are really talking about the very richest among the very richest," Saint-Martin told France 2 TV, adding that households potentially subject to a wealth tax would have income of 500,000 euros (US$551,850) a year.
Prime Minister Michel Barnier this week said he would reduce the budget deficit to 5 percent by the end of 2025 but that he would have to push back the target date for reaching the euro zone's common 3 percent deficit goal to 2029 from 2027. France's budget deficit is set to reach 6.1 percent of GDP this year.
Saint-Martin also reaffirmed special tax plans for the country's biggest companies. He did not spell out precise details but said such companies would have annual profits of at least 1 billion euros.
France is targeting an overall 60 billion euro budget squeeze to rein in its deficit.
"Restoring public finances is going to have to be everybody's business," Saint-Martin told France 2 TV.