France considers tax hikes on big businesses
Date
10/3/2024 8:36:43 AM
(MENAFN) France’s new government is exploring tax increases on large corporations as it seeks ways to address a shortfall in public finances, Le Monde reported on Sunday.
The 2025 budget could propose an 8.5 percent increase in corporate tax for firms with annual revenues exceeding €1 billion (USD1.1 billion), the newspaper said, citing proposals under review by Prime Minister Michel Barnier. This so-called "exceptional contribution" on the profits of large companies would be temporary and is expected to generate €8 billion in revenue next year.
In addition to the corporate tax hike, the government is considering a new tax on share buybacks—a practice where companies repurchase their own shares to reduce supply in the market, driving up their value.
The proposed buyback tax could bring in an estimated €200 million, Le Monde noted. Major companies such as BNP Paribas, luxury goods giant LVMH, and energy firm TotalEnergies could be affected by the new levy.
Barnier’s office declined to comment before the prime minister’s scheduled policy speech in parliament on Tuesday, according to Reuters.
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