French PM aims to refill budget through tax on rich citizens

French Prime Minister Sébastien Lecornu has proposed introducing a new tax on citizens with an annual income exceeding €250,000.

The initiative aims to secure the support of the Socialist opposition during the approval of the 2026 state budget, Caliber.Az reports via French media.

The government expects to raise an additional €3 billion in tax revenues next year through two key measures. The first is the reintroduction of a one-time tax initially implemented in 2024 by François Bayrou, which requires all high-income households to pay at least 20% of their annual income in taxes.

The second measure seeks to restrict the use of holding companies by ultra-wealthy citizens to avoid paying taxes on dividends. An estimated 30,000 financial structures are expected to be affected.

The proposal is part of ongoing negotiations with left-wing parties, whose support is crucial for passing the budget amid the government’s parliamentary minority.

By Khagan Isayev