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€700m in extra tax collected in France

The change to at-source income tax which began on January 1 is set to mean around €700million more tax collected this year.

The Finance Ministry says it is on course to recover 99% of tax due, up from 98% last year.

It says the new arrangements, including automatic levies on salaries and pensions, are proving effective at combating non-declaration due to fraud and “fear of formalities”.

There had been concerns that teething problems with the change could lead to a decrease this year but they have proved unfounded.

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