Total tax break limit discussed

A PROPOSAL to set a cap on the total amount of money you can store in tax-free schemes has been officially tabled.

The finance commission of the National Assembly has passed the proposal in the first of several stages before it is voted into law.

Currently the plans will limit the total amount of money that can be set aside in different schemes to €25,000 plus 10% of a person’s revenue.

The idea to put a total limit on the amount of money stored in niches fiscales was proposed as a sweetner to left-wing politicians during debates on the government’s financial bailout package last month.

France currently has numerous schemes where money can be stored tax-free and some MPs believe that €200m will be raised as a result of the cap.

It echoes a the bouclier fiscale policy introduced by President Sarkozy which limited to 50% the total amount that a person can be taxed.

The niches fiscales proposal will be discussed along with others on November 17 to see if they can be attached to the finance bill.

Photo:Afp