French President Emmanuel Macron’s administration will propose a tax on luxury yachts, supercars and precious metals in France’s 2018 budget. According to Reuters, Macron’s recent move to abolish the wealth tax in France was supposed to be compensated for by a real estate tax. Yachts, luxury cars and jewelry were supposed to escape the tax, but that apparently is not supposed to happen. Further details on the luxury tax were not available by press time.
Politicians on the left criticised Macron’s abolishment of the wealth tax. The wealth tax, introduced by the Socialists in the 1980s, was levied on individuals with assets above €1.3m. It has been blamed for hundreds of French millionaires leaving the country in order to avoid paying the tax.
"The idea of the wealth tax reform was that there should not be a brake on contributors to economic production, that we suppress taxes that deter investors," Richard Ferrand, leader of the Republic on the Move parliamentary group, told Ouest France. "Taxing real estate wealth is compatible with this, but goods such as yachts, luxury cars or precious metals do not contribute to the productive economy either."
Ferrand said he will introduce the amendment with the government’s backing. "Re-introducing taxes on these items does not contradict the spirit of the reform,” he added.
The 2018 budget bill will be studied by the French parliament's finance commission this week.