MPs 'repeal and replace' ISF wealth tax

ISF 'solidarity' tax paid by 350,000 households with a net worth of more than €1.3million to be replaced by a property tax

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MPs voted on Friday to 'repeal and replace' France's ISF wealth tax with a property tax.

Changing the tax has been a controversial part of President Emmanuel Macron's bid to kickstart the French economy - and has prompted criticism from some politicians that he is 'a president for the rich'.

But, following weeks of controversy, the Assembly voted 77 to 19 in favour of Article 12 in the finance bill to drop the ISF, paid currently by some 350,000 households with a net worth of more than €1.3million.

Minister of Economy and Finance Bruno Le Maire told the Assembly the tax was "a 35-year-old ideological totem, which had become inefficient and complex."

Les Republicains backed the move, but said they were disappointed that the additional tax on the wealthy had not been 'completely suppressed', while MPs from three left-wing parties - Nouvelle gauche, Insoumis and communistes - described it as a 'gift to the richest'.

Its replacement, the IFI property tax, will have the same threshold and rate but will be payable only on property assets - not shares, bonds or life insurance.

In 2016, the amount of ISF paid to the state was nearly €5billion. Experts believe the change in taxation will see a fall in revenue of about €3.2billion.