On Friday, the senator announced a call for tax cuts on Airbnb accommodations, a measure the government erroneously retained in the 2024 budget. “We are not voting for the law not to apply,” Communist Senator Ian Brossa said he was outraged on Friday.
The elected official refers to a hitch that occurred when considering the state budget adopted at the end of 2023: the government then forgot to exclude an article introduced by the opposition that would sharply reduce tax breaks for furnished tourist housing, when it had the opportunity.
“Error” that will be “corrected”
However, Wednesday’s Gazette of Public Finance note on taxes clarified that “it will be recognized that taxpayers may continue to apply the 2023 revenue provisions (…) until” the vote on that budget. “Failure to comply with the text is illegal and represents a gigantic shortfall in public finances,” added Ian Brossat, announcing that he would turn to administrative justice and promising to “file an appeal” to the Council of State.
At the initiative of senators from a number of parties, an article adopted this fall during the consideration of the draft budget for 2024 provided for a reduction in the tax incentive for renting furnished tourist housing to 30% (instead of 71%) in areas experiencing difficulties in accessing housing. The government, if it had agreed to revise the tax bracket, was opposed to the idea of reducing the reduction to such an extent and could remove the measure from the text when using article 49.3. But he omitted this item from the final budget. This is an “error” that “will be corrected in the next finance law,” the Ministry of Economy and Finance recalled.
“To limit the impact of retroactive application” of the measure, “it was decided that taxpayers may continue to apply the provisions then in force,” the ministry further said. “Otherwise, this measure would force owners affected by the reduction in thresholds to reinstate accounts ex post, even if they were not previously subject to this obligation,” we added.
Source: Le Parisien
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