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Dramatic illustration of France's high-income tax revenue shortfall, showing meager 400M euros vs. expected billions, with evading wealthy figures.
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Budget: fiasco of the high-income tax

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The differential contribution on high incomes, created in 2025, brought in only 400 million euros, nearly five times less than expected, according to the Ministry of Economy and Finance. This tax, aimed at ensuring a minimum 20% taxation for the wealthiest, was largely circumvented by targeted taxpayers. It highlights the challenges in effectively taxing very high incomes in France.

The French state recorded a deficit of 125 billion euros in 2025, a 31.6 billion drop from 2024, thanks to robust tax revenues, Bercy announced on February 3. This improvement, the strongest since 2020, still hides ongoing debt pressures. Public spending remained steady, while revenues exceeded forecasts.

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Initiated by centrist deputy Charles de Courson, the French National Assembly has approved a commission of inquiry into taxes paid by the wealthiest taxpayers. The parliamentary group will examine the contribution of high patrimonies and incomes to public services funding. The move follows the removal of the Zucman tax from the 2026 budget.

Queues for tax compliance have become a regular sight at Berhan ena Selam Printing Enterprise on Adwa Street in Addis Ababa. This development highlights bottlenecks emerging from recent tax reforms. Businesses are facing challenges in adapting to the new system.

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The French government introduces a new fiscal device, dubbed 'Jeanbrun' or 'private landlord status', to encourage investments in new and old rental housing. Announced as part of the 2026 finance bill, it replaces the Pinel scheme and aims to cut taxes through annual amortization. Meanwhile, Prime Minister Sébastien Lecornu sets the ambitious goal of building 2 million homes by 2030.

The Egyptian Tax Authority has launched a new mobile app allowing electronic payment of real estate transaction taxes and quick issuance of tax clearance certificates. Rasha Abdel Aal, the authority's chairperson, announced this at a meeting hosted by the Swiss Chamber of Commerce in Egypt. The move aims to expand digital services and build trust with investors.

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S&P Global Ratings has voiced concerns that Prime Minister Sanae Takaichi's proposal to cut the sales tax on food purchases could reduce Japan's revenues and undermine its finances in the long term. The remarks come amid a historic rise in superlong bond yields following Takaichi's announcement to lower the sales tax on food for two years if she succeeds in a snap election. Rain Yin, director of sovereign ratings based in Singapore, warned that such tax cuts are not a one-off impact and would exacerbate the fiscal situation if economic and revenue growth weakens amid structural increases in expenditures.

 

 

 

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