A majority of lawmakers supported the proposition from the far-left LFI occasion, regardless of warnings from the incumbent authorities.
French lawmakers on Friday voted in favour of a brand new levy that will tax belongings above the €1 billion threshold at 2%.
It might apply to anybody who’s a tax resident in France or who has belongings in France.
The modification, proposed by the far-left LFI occasion (France Unbowed), comes as France’s Nationwide Meeting debates subsequent yr’s state finances.
A draft proposal created by the incumbent authorities is debated and amended, earlier than being despatched to France’s Senate for one more evaluate.
The acceptance of the wealth tax comes regardless of opposition from the ruling Renaissance occasion, in addition to from the Nationwide Rally occasion.
Talking within the Nationwide Meeting on Friday, LFI lawmaker Aurelien Le Coq argued: “On this finances, we’re asking for efforts from virtually everybody on virtually every little thing, however there may be one factor that we aren’t touching.”
He added: “There may be not a single measure on this finances that decides to faucet into the wealth of the richest individuals.”
Le Coq advised that when merely contemplating the ten largest fortunes in France, the tax would herald at least €13bn for the state.
Laurent Saint-Martin, Minister Delegate for the Finances and Public Accounts within the incumbent authorities, criticised the modification, arguing that it’s “one of the best ways to scare off those that can put money into our nation”.
Friday’s vote comes regardless of failed efforts in France to reimplement the ISF, a wealth tax in France that was changed with one other levy – the IFI – in 2018.
The IFI solely pertains to actual property belongings, which means that it’s not as far-reaching.
The newly proposed wealth tax additionally comes at a time when the French state is significantly in want of additional income.
France’s public deficit hit 5.5% of the nation’s GDP final yr, massively exceeding forecasts and violating the EU’s goal of three%.
On the finish of final month, new finances minister Laurent Saint-Martin revealed that this yr’s determine may overshoot 6%.
Consultants imagine that regardless of Friday’s vote, the advised wealth tax is unlikely to outlive scrutiny from the Senate.