PARIS (dpa-AFX) – In view of the sharp rise in petrol prices, France has announced tax breaks for commuters. Prime Minister Jean Castex announced on Tuesday in Paris that the relief for the annual wage tax adjustment should be increased by ten percent, retrospectively for 2021 as well. This is also expected to lead to a ten percent increase in the mileage allowance that employers pay employees for business trips in private cars, Castex said. Castex did not quantify the amount of relief that would be charged to the state treasury. The government had ruled out a general reduction in taxes on petrol.
In the run-up to the presidential elections in April, the government had already announced that electricity prices would be capped in order to protect people’s purchasing power in France. This is one of the issues in the election campaign. The measure costs the state around 16 billion euros./evs/DP/nas