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France opts to automatically deduct income tax

After days of speculation, President Macron has ruled that automatic income tax deduction will be implemented from January 1st, 2019.

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After days of speculation, President Emmanuel Macron has made his decision: Automatic income tax deduction, or what the French call prélèvement à la source, will be implemented from January 1, 2019, reports Politico.

The policy change, announced Tuesday night by prime minister Édouard Philippe on TV, means French workers will see their annual income tax automatically deducted from their monthly paychecks, rather than having to fork over the amount in one or three installments the next year.

The decision apparently settles a policy change which has undergone multiple delays and the necessity of which has been questioned. Macron’s predecessor François Hollande backed the measure as early as 2015, planning to begin implementation in 2016 with full rollout for 2018.

But early on in his tenure, Macron had doubts about the measure and last September pushed back the reform’s implementation until 2019.

In recent days, suspense grew that the tax measure could be abandoned. French daily Le Parisien published confidential information from the program’s test runs showing “calamitous” tax-collection mistakes.

Read more of this report from Politico.