France's Socialist government has admitted that the country cannot cope with any further tax rises and promised no more hikes just days ahead of the country's largest ever tax bill, reports The Daily Telegraph.
In an unfortunate piece of timing, however, the pledge came just as the environment minister announced the creation of a new "carbon tax" and amid reports that the overall tax pressure on French households will rise even further next year.
Returning from their summer break, the French are about to discover stinging rises in tax bills in their letter boxes – the result of a series of new levies enacted by President François Hollande as he seeks to plug the French deficit and bring down public debt – now riding at 92 per cent of GDP.
But the extent of the hikes has apparently even shocked the very Socialist ministers who implemented them.
The total tax pressure (taxes and social security contributions) will account for 46.3 per cent of GDP this year – a historic high – compared to 45 per cent in 2012.
Some 16 million households will see an automatic 2 per cent rise in income tax as calculations are no longer mitigated by inflation. Family tax breaks will be cut.
Read more of this report from The Daily Telegraph.