Savings on council tax for 2018

The abolition of council tax announced by Emmanuel Macron is taking shape. This reform should enable households on modest incomes to make savings. They could put aside more than £250 per year from 2018. However, this project also has its drawbacks, even though it is good news for more than 80% of French households.

The principle of the abolition of tax

From 2018, the council tax exemption reform comes into effect. It consists of reducing the amount of tax initially. The aim is to abolish it totally from 2020 for more than 80% of French households. Clearly, it is important to meet certain conditions to benefit. The first criterion involves earning less than £20,000 per person per year. They can then make worthwhile savings of up to more than £250.

The concerns of various parties

Everyone has their own view on the implementation of Emmanuel Macron’s reform. While the French are rather in favour, municipalities are questioning the financial repercussions. For small and medium-sized communes, council tax represents nearly 15% of their annual budget. This loss of revenue is likely to have impacts on services offered to residents. Free transport may become chargeable. There are also strong chances that nursery or canteen fees will rise. In this case, households will pay less tax, but they will have to bear other charges to preserve their standard of living.

The abolition of council tax is an ambitious project that should delight many French people, but it is news that deserves careful analysis.