French president plans overtime tax cut to boost productivity
President Sakozy looks to cut overtime tax and make inheritance tax deductions, but critics warn of the costs involved
The new French president is moving forward with his pledge to provide tax
incentives to keep workers in the office.
President Sarkozy wants to introduce legislation so that work over 35 hours
would not face ‘social charges’ or income tax, reports
Times . Social charge rate is fixed at 21.5% and income tax
varies from 5.5% to 40%.
Employers would also have to pay workers 25% more than the standard hourly.
France currently has a 35-hour legal maximum working week that was introduced
by the Socialist government in 2000.
Sarkozy also plans to create mortgage interest and inheritance tax
However, critics have warned the package would deprive public coffers of 12bn
euros (£8.2bn) in tax.