Emmanuel Macron to introduce new tax on expensive jewellery, supercars and luxury yachts

Lawmakers to propose amendments after critics attack the President’s move to scrap wealth tax

Sunday 08 October 2017 17:41 BST
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Emmanuel Macron has been labelled as the 'president of the rich'
Emmanuel Macron has been labelled as the 'president of the rich'

Emmanuel Macron’s administration will propose a tax on luxury yachts, supercars and precious metals in France’s 2018 budget.

Lawmakers will propose amendments after critics attacked the President’s move to scrap the wealth tax in France.

Mr Macron abolished the tax, which has been seen as a symbol of social justice for the left but blamed by others for driving thousands of millionaires abroad.

Those on the left slammed Mr Macron’s move and said it was proof he was a “president of the rich” - a label which the former Rothschild banker has been struggling to counter since taking office.

The wealth tax, introduced by the Socialists in the 1980s, was levied on individuals with assets above 1.3 million euros (£1.2 million).

Initial plans were to replace it with a real estate tax but yachts, luxury cars and jewellery were supposed to escape.

"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."

Mr Ferrand said he had the government's backing to introduce the amendment.

"Re-introducing taxes on these items does not contradict the spirit of the reform,” he added.

The 2018 budget bill is due to be studied by parliament's finance commission this week.

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