France’s new government is mulling tax increases on big businesses as it seeks ways to plug a hole in public finances, Le Monde reported on Sunday. The 2025 budget could include an 8.5% increase in corporate tax for firms whose annual turnover is above €1 billion ($1.
1 billion), the newspaper wrote, citing proposals assessed by Prime Minister Michel Barnier. The so-called ‘exceptional contribution’ on the profits of large companies would be temporary and could yield €8 billion next year. Among other possible measures is a tax on share buybacks, a practice in which companies buy their own shares to reduce their number on the market and subsequently raise their value.
The new tax could bring in around €200 million, Le Monde noted. Financial services company BNP Paribas, luxury goods conglomerate LVMH, and energy firm TotalEnergies could be the target of the new levy, it added. Barnier’s office declined to comment ahead of a policy speech by the prime minister in parliament on Tuesday, according to Reuters.
France’s public debt reached a record €3.228 trillion at the end of June, Le Monde reported on Saturday, citing the latest data from the French National Institute of Statistics and Economic Studies. The figure amounts to 112% of the country’s GDP, well above the 60% threshold set by EU regulations.
Only Greece and Italy are ahead of France in terms of general government debt among bloc members. Barnier’s government is also under pressure to cut France’.