French households will pay more taxes next year while businesses will see their overall burden cut, the government's 2014 budget bill showed today.
The moves are designed to boost competitiveness and growth.
The 2014 budget will focus fiscal tightening on keeping a lid on public spending, with €15 billion in savings planned.
But €3 billion from extra tax and measures to fight tax fraud, plus a planned €6 billion increase in sales tax, mean the tax burden will nevertheless grow.
The French government had already announced earlier this month that the 2014 budget would target a public deficit of 3.6% of economic output next year, better than this year's 4.1% but worse than initially forecast.
It said today that public debt would grow to 95.1% of economic output next year from 93.4%, with debt servicing costs seen at €46.7 billion from about €45 billion in 2013.
The 2014 budget as expected will be based on a growth forecast of 0.9%, lowered from a previous 1.2% forecast. The government expects feeble growth of 0.1% this year.
The government also announced a change in corporate tax policy, by scrapping an annual flat tax on top of other levies and introducing a new one based on operating profits.
It will, as planned, slap a 75% tax on salaries exceeding €1m a year, a rate that includes social contributions. The tax will be levied on firms rather than the employees themselves.
Overall, businesses will see a stable tax level next year, but when taking into account €10 billion in tax breaks meant to boost competiveness, the burden will be smaller.