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New 75% tax law 'ready by autumn'

Revised law could apply for five years instead of two - and be deducted at source

A REVISED law imposing a 75% income tax rate on millionaires in France will be resubmitted to parliament by autumn and could come into force in early 2014, the government has announced.

Junior budget minister Jérôme Cahuzac told reporters yesterday that the redrafted tax bill would be part of this year's finance law.

The delay comes after the original version of the law was thrown out by the conseil constitutionnel because it was considered unconstitutional.

In an interview with Europe 1, i-Télé and Aujourd'hui en France, Mr Cahuzac said: "I can’t say today when the new finance law will go before parliament… by autumn at the latest."

He said the government would like the 75% tax rate - which was one of President Hollande's key eleciton promises - to be introduced as soon as possible.

Mr Cahuzac also suggested that the tax might apply for five years - instead of the two years initially planned - and that it could be deducted at source from company payrolls.

The conseil constitutionnel ruled that the original wording of the law was unfair because it calculated the tax on an individual basis, when other income tax is applied at household level.

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