The National Assembly has adopted the supplementary budget bill (PLFR) for 2014 by a large majority with 307 votes against 232 and 14 abstentions. This will notably enable 3.7 million households to benefit from a tax cut as of September, as provided for by the Responsibility and Solidarity Pact.
3.7 million low-income tax households will benefit from tax relief in September
And 1.9 million tax households will cease to be taxable or will avoid becoming taxable. The PLFR provides for an income tax cut of €350 (€700 for couples) for taxpayers whose average tax revenue is lower than 1.1 times the minimum wage. This measure, which will increase the purchasing power of these households by €1.16 billion, will be offset by the excellent results of the fight against tax fraud.
The MPs have also decided to renew the council tax and audiovisual licence fee exemption for approximately 250,000 low-income taxpayers (for a cost of €45 million).
The surtax on corporate tax extended
The PLFR extends until 2016 the surtax on corporate tax, voted last year, which essentially concerns large companies and represents revenue of €2.5 billion. This measure will make it possible to maximise the impact of the Pact measures in 2015 on employment and investment.
€1.6 billion of additional savings for the State in 2014
The Government is reaffirming its commitment to maintain the reduction path of public deficit by implementing additional savings measures of €4 billion in 2014 in the framework of the PLFR and the supplementary budget bill for Social Security (PLFRSS). Savings of €1.6 billion, primarily from cancellations of budgetary appropriations, will be made, that is to say the State's share of the €4 billion in savings announced by the Government.
The heavy goods vehicles transit toll adopted
The amendment replacing the eco-tax with a heavy goods vehicles transit toll has also been adopted. The new measure, which will come into force on 1 January 2015, will affect lorries weighing more than 3.5 tonnes circulating on a network of 4,000 km of national and local roads highly frequented by heavy goods vehicles.
It should bring in €500 million per year.